Right, the stock drops 13 bucks and 24 cent dividend makes a big dif. The bounce is all about shorts like you pushing their case too hard and some getting nervous that if the accounting turns out to be OK or a trivial problem, getting toasted big time. Particularly if something positive comes out after the close or over the weekend.
The selling was way overdone. When you run out of sellers, this stretched rubberband is gonna snap back....just be careful now which side of the trade you are on. Added more this morning after seeing the intra-day reversal. We should get at least a good 2-3 day bounce from here.
No, let me help you out. The SEC probe is dismissed without finding of wrong doing, the stock spikes up. The merger is completed and then this trades approx 5 to 10% of where it was before the over reaction to what is basically a non event. I make a fairly good living buying good stocks that sell off in huge over-reactions to bad news.
Rohan: the short sellers are responsible for covering the dividend to the entity they borrow the shares from when they short
Actually he's right. When you short shares, you borrow them from the owner and sell them to someone else. But the original owner still has the shares in his account (usually unaware that the shares have been borrowed), and he/she gets the dividend payment from LINE. The short seller has actually temporarily created more shares of LINE, and therefore the short has to pay the dividend to the person he sold the shares to. I use short positions on ETFs sometimes to hedge my long positions (a "pairs trade"), and I have to pay the dividends on those short positions if I hold them past the ex-div date.