Stocks: Why I Like the CMI- ATMU deal…

[Recyclersteve]

This is one of those Exchange Offers where those who buy 99 or fewer shares of CUMMINS (CMI) (Per tax ID) will have ALL OF
THEIR SHARES converted to ATMU (Atmus Filtration) stock. Even just 99 shares of CMI costs about $26,000.

More details in the next 1-2 days- or you can Google this for more info.

Yes, I just bought my 99 shares of CMI today. PLEASE REFRAIN FROM rounding up to 100 or more shares- you are at a distinct DISADVANTAGE if you do that. Again, more details soon. Gotta run to work!

[Recyclersteve]

Here is some more info on the Cummins (CMI)/Atmus Filtration (ATMU) exchange offer deal…

You start out by buying 99 or fewer shares of CMI stock per tax ID (not per account).

You reach out to your brokerage firm and ask them about how you can submit your Cummins shares to receive Atmus shares in exchange. Don’t worry- CMI is a much more expensive stock than ATMU, so that means you will get a lot more ATMU shares. You will likely get something like 1,200-1,300 shares of ATMU in exchange for 99 CMI.

Once you get the ATMU shares, just sell them in the open market. Just don’t use a market order, which is like writing a blank check. That could cost you. If I have a decent profit, I’ll typically put in an order to sell the new stock (ATMU) at a price perhaps 1/2- 1% lower than the most recent close.

WHY DO THIS DEAL? A very good chance to make good money is the reason. CMI is providing a roughly 7% incentive to those who have shares accepted for this deal. NO, THAT IS NOT A GUARANTEED 7%. It could end up becoming, say, 5-9% or even more. Lockheed Martin’s deal in 2016 with Leidos ended up paying out OVER 20% to those who bought 99 or fewer shares! I had an Excel spreadsheet where I tracked results for my friends who did this and 101 people combined made well over $500,000 profit on the Lockheed deal alone. Eight years later I still have people occasionally bringing up that winner.

Of course, there is absolutely no guarantee of any profit whatsoever. You must be willing to take some risk! That said, of the 16 previous deals I’ve done similar to this type of corporate action since 2013, ALL OF THEM have been profitable. There were some where I was expecting to make $2,000-3,000 profit and the profit ended up being perhaps $500-700 or so and where it might have taken 3-4 months or so to get that money. But there were at least 4-5 that I’d say were absolute home runs.

When is the deadline? The official deadline is 3/13/24 (Wed.), but the deadline at your broker will almost certainly be a few days earlier. At Schwab the deadline to submit to exchange shares is 3/11/24 (Mon.) at 7pm EST. If you need to tender only settled shares, that would mean buying no later than 3/7/24 (Thurs.). BOTTOM LINE: Check with your broker to see what the rules are. They will likely have a department called Corporate Actions or Reorg that knows about this.

Oh yeah, there is a website set up to track this deal on a daily basis. It is…

http://www.okapivote.com/CumminsAtmusExchange

What questions do you have?

[hobo finds]

https://investor.cummins.com/news/detai ... n-of-atmus

[Recyclersteve]

Thx for posting the link. For anyone interested in doing this deal, you will likely need to buy stock either Wednesday or Thursday. At Schwab, the last day to buy is Thursday and the last day to tender is next Monday (the 11th) by 7pm EST. Check with your broker to see what their in-house rules are.

I have a personal friend opening her first-ever brokerage account with over $25k just to do this deal. I also have a high school friend putting his first $3,000 into it.

No guarantees of making $, however I still think this one still looks really good…

[Recyclersteve]

None other than Barron’s came out Friday in favor of this deal. This is (I believe) the first time such a prominent nationally recognized name has sided specifically with the strategy outlined above.

Barron’s said: “Retail Investors Could Make $2,000 on Cummins Exchange Offer”

This site seems very quiet when it comes to stock market stuff. Fortunately, I did find 4 personal friends of mine (who’ve never done an odd lot deal before) to participate in this one for their very first such experience. That was in addition to perhaps 20-30 regulars. So all was not lost.

[silverflake]

Steve, continue posting. I have been unable to....no, I've been chicken to jump on these. I need to hike up my big boy pants and take a swing next time you post one of these deals.

Thanks for trying to help us.

[Recyclersteve]

Guess what? It appears to be getting even better. Barron’s said $2,000 profit was their estimate on Friday. On Wednesday, just 5 days later, they raised the target from $2k to $4k! This one is still acting well.

If you missed out, all is not lost. I do expect a brief pullback on ATMU stock when many get their shares at the same time and put them up for sale at the same time. HOWEVER, Atmus is a cheap stock (P/E of only 12) and just hit a new high Wednesday with huge volume. That appeals to both value investors and momentum investors, many who are just now discovering this name. I plan on selling to book a nice profit and then buying again on a modest pullback.

A year from now my guesstimate is that ATMU is between $35-40 a share. Not too shabby!

[Recyclersteve]

Barron’s came out yet again to raise the profit target on this deal. First it was $2k. About 5 days later it was raised to $4k and then to $5k just 1-2 days after that.