I emailed Onvi on Mar 31st and asked the following question re the ONVI shares I hold:
"Do I receive the distribution if I continue to hold the stock until the close of business April 19th? Or is it May 3rd? Or is it May 6th?"
Here is the email I rec'd back from Mike Pickett dated Apr 4th. He's saying we have to hold our ONVI shrs through May 3rd in order to get the distribution. I don't understand this as, the release says share holders of record as of Apr 19th. What gives? I've mailed Pickett back for explanation. Meanwhile, perhaps someone on this board can explain this?
----- Original Message -----
From: Mike Pickett <email@example.com>
Sent: Thursday, April 04, 2002 7:52 PM
Subject: Re: Fw: ONVI Shareholder Question
In order to receive the dividend, you must hold the stock through the close of the market on May 3. In the case of someone with a $19/share basis, the cash distribution would be tax free, decreasing your basis by $.39/share.
I apologize for the delay in responding.
Sent from my BlackBerry Handheld.
Onvia will pay a cash distribution of $.39 per share on May 3, 2002 to holders of record on April 19, 2002. The stock will be ex-dividend on May 6, 2002. Onvia believes that this distribution should qualify as a return of capital, with resulting tax advantages to shareholders.
I read this as: a cash dividend of $.39 per share will be paid to all current common shareholders on May 3, 2002, who were also shareholders as of April 19, 2002. The sentence,"The stock will be ex-dividend on May 6, 2002." I read as the day such holders of record will recieve the payment.
Othewise, what work is the May 3, 2002 date doing as the expressed day of payment of the dividend? None.
All BTGC shareholders,
I'll try this again. Is the interpretation/answer in this post from gameteorynow consistent with what everyone believes to be true?
"I read this as: a cash dividend of $.39 per share will be paid to all current common shareholders on May 3, 2002, who were also shareholders as of April 19, 2002. The sentence,"The stock will be ex-dividend on May 6, 2002." I read as the day such holders of record will recieve the payment."
Good post......You will help to create that confusion I'm looking for. I like the way you read this....
I guess the stock will drop 39 cents on the open of the next business day after the 19th of April......Yikes!
He he he.
However so many on this board have been implying holders of btgc as of the close on Apr 19th will receive the distrib on the 6th even if we sell it on April 22nd.
I've also held stocks where this has happened before. Where as long as you're a holder of record as of a certain date, regardless of whether you sell the next day, you rec'v either additional shares, or cash, in the form of a distribution at a current date.
So, between Pickett, you and the last poster, I'm still not convinced. Wish I had a full broker to call now, eh!
There is always confusion about this type of distribution. Lots of people always get caught....and others make lots of money.
Which date is the critical one?.......Could Pickett be right?.......Or will the stock really tank on April 17th as one poster here suggests?
Could posters here intentionally put up the wrong date in an attempt to confuse investors into selling on the wrong date?
Another stock I owned once did a share distribution....and lots of folks sold the stock after it tanked......and then found out they did not get the share dividend either! Boy wre they pissed. Those who bought after the record day but before the Ex-Day....got a huge discount and the dividend shares. They made a killing. I was one of them.
I'm going to be consulting with my stock broker.......(Not that I don't trust you).....I would like to buy the stock at 19 cents....and get the 39 cent dividend.
If folks do not understand how this works....exactly......I may be able to do this.
Govbuster and Bilsbrothers will be watching this....I'll bet you a buck on that!
I don't have enough info in your reply to me to completely understand. Whether the stock tanks on Apr 17th is of no consequence to me. I just want to get to the bottom of shareholders of record as of April 19th(Co announcement) Vs "you must hold the stock on May 3rd to get the div on Ex-Div date May 6th (per Pickett).
Here's the lingo as I understand it(correct me if I'm wrong)
April 19th = Sharholders of RECORD DATE
May 6th = EX-DIV DATE (date rec'v the distrib)
May 3rd = ???
Also, you say "those who bought after the record day but before the Ex-Day....got a huge discount and the dividend shares".
Putting this in BTGC terms/scenario: Buy after Apr 19th but on or before May 3rd, would get the distrib on May 6th.
IS THIS CORRECT? IS THIS YOUR THINKING?