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Hi,

If I want to track performance of my individual stocks, how do you track a stock that has a spinoff?

Take Boustead for example.

1. Suppose if I had 3 lots initially bought at $1.80 bought on 10 Jan 2015 (it's hypothetical, so the price and date doesn't match).

2. As of 30 April 2015, it is $1.415.

3. The Spinoff, boustead projects, is $1.045, with 900 shares.

If I'm tracking a portfolio using XIRR, it would have been easy, but if I would like to track individual stock, I'm a little confused.

Should I subsume boustead projects under boustead still? Or should I consider it as 2 different stock and track on another table. But, it would appear like a huge loss on my original purchase.

Appreciate any ideas on managing this calculation.

Method 1
Keep the Boustead purchase cost unchanged and treat Boustead Proj as nil cost.

Method 2
Boustead 3000 1.75 Last closing price before ex-entitlement 21 April
Boustead 3000 1.49 First closing price after ex-entitlement 22 April
Boustead 0.26 imply cost per each Boustead share
Boustead 780 Total cost
Boustead Proj 900 0.867 Cost of each B Proj
Boustead Proj 1.045 First closing price
(To deduct 0.26 from the purchase cost of each Boustead share and create 0.867 cost for each Boustead Proj share)

Method 3
Boustead 3000 1.75 Last closing price before ex-entitlement
Boustead 3000 1.415 First closing price upon B Proj listing
Boustead 0.335 imply cost per each Boustead share
Boustead 1005 Total cost
Boustead Proj 900 1.117 Cost of each B Proj
Boustead Proj 1.045 First closing price

There are other methods, but I choose Method 1 (your current method) for simplicity and treat the handout of Boustead Proj (as a form of dividend).

"Sell" your shares pre-spinoff at the pre-spinoff price. "Buy" back your shares at post-spinoff price (same day). "Buy" the spin off at the appropriate price.

The advantage of this method is if you are using a spreadsheet to track transactions, you don't have to invent a special feature for this.