Board members... the ex-date for the spin-off of the NRZ was May 6 and now it is May 15....as I understand it the SEC 'made NCT make May 15 the record date' for the NRZ share spin-off and that is what is probably pushing the share price up today...at this time I am up 37% on NCT (yield about 7.5% and NCT is up 35.9% YTD in Total Returns)...
I really don't understand the big deal about the NRZ spin-off because the share price of NCT will drop by the 'same amount' on the day of the spin-off...However, the investors on the street seem to think it is great deal because it is pushing up the share price of NCT....! $tagg...!
"the ex-date for the spin-off of the NRZ was May 6 and now it is May 15"
No. May 6 was the record date, not the ex-date. May 15 is the distribution date, not the record date.
"as I understand it the SEC 'made NCT make May 15 the record date' for the NRZ share spin-off"
No. The SEC has nothing to do with it. FINRA makes the rules for dividends and distributions, not the SEC, but the record date and the distribution date are set by the company, not FINRA or the SEC. FINRA rules determine the ex-date, which is May 16th, the day after the distribution date.
"I really don't understand the big deal about the NRZ spin-off because the share price of NCT will drop by the 'same amount' on the day of the spin-off"
No. The share price of NCT will adjust down on the day AFTER the spin off is distributed, not the same day.
Board members...this does not make sense, if the share price is adjusted after the spin-off is distributed (the day after)...we can sell our NCT shares 'before the share price is adjusted' because the next day we would already have our NRZ shares...the share price on NCT would have to be adjusted 'at the same time' that we receive our NRZ shares...
It don't make any difference because I will hold my NCT shares until after the spin-off, but it is starting to look like somebody is 'playing silly games' and the news still ran the share price of NCT up today...! $tagg...!
Stragg, I agree, I'm not sure what is going on. We are past X-date so if you buy now you do not get NRZ only NCT. NCT will be reduced after the spin off. I read that the SEC will look at several dates to determine the new share price for NCT. I'm trying to decide whether to keep both stocks. With TWO, I sold the spin off. At this time if TWO stays at this price it will take three more dividend payments for me to break even.
When XIN went over 5 yesterday, I had planned to sell it this morning but got caught up in some other stuff and did not get to the computer until after it was back down. I'm hoping to sell above 5 for a modest profit.
"We are past X-date so if you buy now you do not get NRZ only NCT"
No, the ex-date is May 16th, the after the distribution of NRZ. Haven't you noticed the price of NCT hasn't adjusted down to account for NRZ yet?
"I'm not sure what is going on"
"I read that the SEC will look at several dates to determine the new share price for NCT."
Then you read something from someone else who's not sure what's going on. The SEC has nothing to do with when the share price of NCT is adjusted down to account for the spinoff. Established FINRA rules have already determined that May 16th is the ex-date.
B-man....'here is a surprise for you', TWO (yield about 11%) has just turned in 'outstanding earnings' after hours and should make 'a big run up' in share price tomorrow...if I did not make a mistake (which is very often), the comprehensive income of TWO is up about 34% from the same quarter last year....You may want to 'drop a stop loss order early tomorrow' as I am looking for a early surge in share price...however, TWO could go up even more in share price after the conference call...! Good luck...! $tagg...!