Charles
Tue Jul 22 19:54:36 CDT 2003
Mr Learner was correct. Those shares are deemed worthlees There was nothing
left for the employees and investors. Whatever value the Kmart shares had on
its last day of trading went to a certain account (Prudential GISA - A
stable value fund) in the Kmart 401k. The value is like pennies on the
dollar for each share. I took Kmart off my portfolio.
The original writer never did say if he was an employee of Kmart. It is my
understanding if you have a Kmart 401k employee account, the Kmart shares
deemed worthless cannot be counted on your schedule D as a loss. Is this
correct?
Thanks!
"Cal Learner-- MVP" <via_newsgroup@please.tnx> wrote in message
news:nl5ohv0c51uq6c9pitm9e6d9c1euvgkk9f@4ax.com...
> In microsoft.public.money, Jonathan B. Jung wrote:
>
> >I have shares in Kmart from before and durning bankrupcy (KM)... then
Kmart
> >nullified those shares and came out with new shares as KMRTQ. Everytime
I
> >want to update my MM2003 it updates my KM shares to the price of the
KMRTQ.
> >Is there any way around that? I still have the KM shares since Kmart may
> >eventually pay out the KM shareholders (we are last on the list). Is
this
> >the punishment for having bought Kmart?
>
> Afraid so. Per
>
http://www.kmartcorp.com/corp/story/pressrelease/news/pr030124.stm
> "A plan of reorganization could result in holders of Kmart common
> stock receiving no distribution on account of their interest and
> cancellation of their interests."
>
> Kmart emerged from bankruptcy May 5 and it appears that canceling
> the old shares indeed happened. The creditors got the new shares. It
> is unfortunate that they have not made this as clear as I think they
> should. Some cases like this give the old common stock holders a
> tiny amount of the new shares. That does not seem to be the case
> here.
>
> What I would do, if it were me, is to do a Sell transaction for $0
> of your shares dated May 5 -- the day I would deem they became
> worthless. Then when you print your schedule D, I would ink the word
> "Worthless" in the box with the zero in the Sales Price column.
>
> Some brokers will issue a letter upon request that a particular
> security has become worthless. The case of Kmart was famous enough
> that I doubt that such a letter would be ever needed.
>
> As far as getting quotes, I would blank out the symbol for Kmart in
> the account details of Money.
>