thanks for making sure I could understand what I wrote. Those quotes are a godsend! I not able to read what I wrote, only what you wrote that I wrote! LOL. the short sellers payout on the dividend comes off the bottom line at tax time. they can deduct that from the cost basis and so he would still realize the profit from the short position after taxes as long as he holds it at least 45 days. which furthers my point that it will just take longer to make a profit holding this as a short and you will make the money on the trade quicker if you were long on this and collect the dividend (as long as you were not buying at those highs of 1.60 to 1.70
Buying more this week funds settled. Again you can buy up till dividend payout simple. Best to all I got back in at $1.46 for the third time. Earning the sixth may hol this down, but after we go to $1.80. Be patient
"I thought SEC guidance was that the ex-div date is 3 days before the record date."
For normal dividends, two days before the record date, not three. And if you read the SEC site's Ex-Dividend Dates page, you'll see that it also covers the circumstance of when the ex-date is after the record date.
"I see not harm in shorting the stock. And you will almost certainly make 50 cents a share that way too as the stock will indeed fall after folks get the dividend."
Are you not aware that short sellers holding such a position through the close of trading on the day before the ex-date have to pay the dividend to whoever they borrowed the shares from?
"You will need to wait a couple of weeks to collect that 50 cents on the short as this thing does not fall by 50 cents on the ex-div date. It falls about 20% that day and then gradually sells off over several weeks."
Twenty percent of the dividend on the ex-date, huh? In January it paid 10 cents and fell seven cents on the ex-date. That's more than three times your 20%. In December of 2013 it paid 45 cents and fell 45 cents on the ex-date. That's five times higher than your 20%. In June of 2013 it paid 1.60 and fell 1.58 on the ex-date. In December of 2012 it paid 2.00 and fell 2.05 on the ex-date. Obviously you don't know what you're talking about.
"this is not the first time this company has paid a dividend and so the pattern is crystal clear"
Yeah, it's crystal clear but you somehow managed to fog it up.
according to the filing the ex-div date is not till August 13. I must admit, I have not seen that before. I thought SEC guidance was that the ex-div date is 3 days before the record date. I thought the Aug 13th date was a misprint in reporting. But the filing at SEC does indeed state Aug 13th. If for whatever reason you are not interested in the dividend, I see not harm in shorting the stock. And you will almost certainly make 50 cents a share that way too as the stock will indeed fall after folks get the dividend. But this is not the first time this company has paid a dividend and so the pattern is crystal clear. I have no idea where you come up with a 50 cent price target. That is absurd. As I said just look at the 1 year chart and you can see how this trades pre and post dividend, You will need to wait a couple of weeks to collect that 50 cents on the short as this thing does not fall by 50 cents on the ex-div date. It falls about 20% that day and then gradually sells off over several weeks. There clearly is support around 1.25. long story short; it is much easier to make 50 cents a share on this one by collecting the dividend and selling afterwards (or event shorting afterward to make more)....that way you dont have wait 3 or 4 weeks to complete trade and get the 50 cents a share
I am guessing a drop to $.94 post dividend. Then we will see ENZN settle in for a while as the royalties pour in and the cash coffers swell up until another cash dividend is paid.
Because MikeAnthony is a loser creep who boasts how much money he made on ITEK right before it shot up and burned his short behind. Later you loser.....Mikey boy
hmmm. where do you get your math? This is a legit stock to invest long term. Seriously ask yourself why are people against a stock that pays a .50 dividend? Look at the chart. In two years when the stock was trading at $1.62 it has paid out dividends of $1.6, $0.45 and $.10 respectively. Here we are 2 years later sitting at $1.30 support point and you pushing false info that the stock will fall 75% after a payout of $0.50? Tell me what Stock Board will risk delisting of stock for a dividend pay out?
That's a very good question; my hat is off to you. Enzon will continue to receive immunity fees on actively marketed products, after the expiration of patents and royalties, for a period of 12 years. Therefore the teats will continue to produce milk for quite some time.
I anticipate hearing some updates on the Belrose trials by the end of the year which could benefit the ENZN shareholders tremendously. Couple that with the NOL's and the company will be in great shape to be acquired. Until then the sweet special dividends will just keep rolling in. This is a great stock to sleep on at night.
What do you think of the Belrose relationship outside of the sweet deal they received?
The answer is $800K for the IP sale. I didn't remember. I had to search the board messages to find the answer. Great deal for a 3 month startup! How much are the NOL's? I think I remember 100M+.
So how long are Bessie's teats going to be milked before the Belrose sweet "cheese" deal matures enough to actually benefit ENZN shareholders in your estimation?
"I been telling everyone and shorts are aboard and Ex-date gone"
Why have you been telling "everyone" that when it's not true? Are you trying to convince them that you're ignorant about dividend dates? If "everyone" knows you, they're probably already aware of your ignorance, so it's probably a wasted effort. Much like your post here.
"So many so wrong about the date on ex-date"
Yes, and you're prominently among them.
"No one knows the true facts!"
Well, it's clear that you don't.
Before you post again, why don't you spend a little more time researching the facts - you wouldn't want people to believe that you're merely lying...would you?
What's very clear is that you understanding of the dividend process, along with how this will impact the share price following the payable date is obviously clouded by your so-called short call on ENZN - do your research and then come back with your findings. If you need assistance, just ask, and we'll be happy to clarify things for you!
I been telling everyone and shorts are aboard and Ex-date gone and no reason to buy until .50 or lower on share price.......So many so wrong about the date on ex-date and made money on the way up and now many money on my short...........No one knows the true facts!.........I said the shares will be trading at .50 or lower and on the way to .50............
The 25% rule is very simple: if the amount of the dividend is equal to 25% or higher of the value of the security, then, a special ex-dividend date is imposed - hence, the Nasdaq setting an ex-dividend date ONE DAY after the payable date. The reason for this is to prevent the share price from dramatically falling before the payable date.
"I probably don't understand rule"
You're right about that.
"I'm saying is that 25% of $2.00 is $.50 and if price @ pay day is $2.01 the 25% rule would not apply IMO. Could be wrong and probably am."
Yeah, but look at it this way: You're right about being wrong.
According to your opinion, the ex-date should change if the stock price goes above $2 at any time before the payment date. That would also mean that the ex-date should also change if the stock price falls below $2.01. Considering that stock prices tend to fluctuate, and ENZN is no exception, if it should begin to trade in a range that saw it repeatedly rise above $2 and fall below $2.01, you would have the ex-date bouncing back and forth between July 17 and August 13. How, exactly, do you see that working when July 17 has already passed?
drebsamen, you could've read back a few posts and learned that the application of the 25% rule is based on the price of the stock on the day a dividend is declared, not upon a fluctuating stock price between the record the payment dates. Why, that would be as ridiculous as posting nonsensical misunderstandings on a stock message board.
I probably don't understand rule but, all I'm saying is that 25% of $2.00 is $.50 and if price @ pay day is $2.01 the 25% rule would not apply IMO. Could be wrong and probably am.
Just think about what you've posted - first off, how is it possible to have a floating ex-dividend date. (this would be equivalent to rolling the dice in Vegas) Secondly, should the PPS move above $2, this would once again support the 25% or higher rule - hence, the ex-dividend date was set by the Nasdaq to be one day AFTER the payable date!!!! As was mentioned, 7/21 is the record date, and in a typical dividend scenario, the ex-dividend date is two trading days before the record date - that said, this IS NOT A TYPICAL DIVIDEND SCENARIO!