Today’s News: Apple (AAPL) product upgrades; new details on the KLX Inc. (KLXI) spin-off and merger.
Apple (AAPL) aficionados will enjoy reading about the many changes and upgrades coming to consumers via the iPhone, Apple Watch, iPad Protablet, AirPod and AirPower wireless charger, detailed in this Bloomberg article from today.
AAPL is a slightly undervalued growth stock, and my favorite stock for long-term investors. The stock ran up nicely in August, and might now rest for several months. Watch for an opportunity to buy on a pullback below 200. Buy.
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KLX Stockholders Approve Merger With The Boeing Company
KLX Inc. Board of Directors Approves Spin-Off of
KLX Energy Services Holdings, Inc. to Occur on September 14, 2018
Read the press release here.
Synopsis of the press release:
• KLX Inc.’s Energy Services Group will be spun off to KLX shareholders on September 14, 2018.
• The new company will be named KLX Energy Services Holdings, Inc.
• The new company’s stock symbol will be KLXE and will trade on the NASDAQ.
• “In connection with the spin-off, for every one share of KLX common stock held [symbol KLXI], KLX’s shareholders will receive 0.4 shares of KLX Energy Services common stock. KLX shareholders will receive cash in lieu of fractional shares.”
• “KLX will continue to trade on the NASDAQ under the ticker symbol KLXI, until the consummation of the Boeing/KLX merger, which is expected to occur in the fourth calendar quarter of 2018.”
o e.g. 100 shares of KLX Inc. (KLXI) = 40 shares of KLX Energy Services Holdings, Inc. (KLXE) + $6300 cash from the Boeing (BA) merger
When KLX Inc. (KLXI) shareholders receive the spin-off shares of KLX Energy Services Holdings (KLXE), they will be free to hold or sell those shares at their discretion. At this time, there is no information available pertaining to the initial share price of KLXE. I will continue to monitor the news and share price.
After the KLX Energy Services Holdings (KLXE) spin-off occurs, the remaining shares of KLX Inc. (KLXI) should trade near $63 per share. Shareholders are free to sell those shares on any business day at the market price, or await the consummation of the Boeing merger in the fourth quarter of 2018, at which time they will receive $63 per share. Once the spin-off occurs, I will certainly suggest that shareholders sell KLXI when it trades near $63, as opposed to waiting several weeks or months to ultimately receive $63 per share.
The stock is rising now. If it gets anywhere near 80 in the coming days, expect selling pressure to kick in. Hold.