Buying Back my Broken Heart. RRD

While watching some Mad Money with Jim Crammer, R.R. Donnelley & Sons (RRD) had an interview with Jim.  While they were talking, they would not deny the takeover rumors are done with Xerox (XRX).  However, it sounded like the negotiations were not working out and it did not seem likely.  This means that Xerox (XRX) was not going to buy up any or all of the 3 hearts.  So the 3-way breakup plan was still full steam ahead.

Broken Heart

So our original thesis of owning the company over the break up talks is valid once again.  From listening, it sounded like it was probable that 2 of the 3 companies were going to pay a dividend.  Since the takeover rumors now seem to be gone, the stock price fell from the $19.74 we sold it at and it is now back to $17.33.  That was a quick 12% reduction in stock price.

Buying Back my Broken Heart

While our plan is not to trade our stocks, the facts changed again very quickly.  This caused us to sell all of our shares and now we are buying them back again.  We usually buy stocks in the $300 price range.  Since this is our second buy, we are going to double our target to around $600 purchase.  We bought 33 shares for $578.81 including those trading commissions.  Since the company is splitting into 3, we wanted to buy the stock in a share count divisible by 3.  It turns out you can divide 33 evenly by 3. (Don’t pull out your calculators, 33 / 3 = 11.) I do not know if that really matters at all, but we did it anyways.   Since one of the 3 companies might not pay a dividend, we will need to decide what to do with it after the 3-wat break up.


As a small plus, R.R. Donnelley & Sons (RRD) ex-dividend date is 8/11/16.  So we are not going to miss any dividend payments from them.  Actually, our next dividend payment is only 6 days away.  So we are going to earn $8.56 very soon.  That is a nice little bonus for breaking our hearts.

Disclosure:

  • XRX – We do not own or plan to own the stock in the next week.
  • RRD – We bought shares.

 

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