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China Mass Media Corp. Message Board

  • yakimariver yakimariver Oct 29, 2011 12:01 PM Flag

    S. dividend and share price

    So far, I got one special dividend only, that was from NPD in 2009. I remember, after the recording day, the share price went down almost exactly to the price that substracted the special dividend from the price the day before the recording day.

    can somebody explain, why did the price go down that way? Is it a market behavior after the dividend? Or it's an ordered price cutting down based on any regulator's rule?

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    • a special dividend is a one-off cash out which results in less value - same amount - for the company

      in this case, there are two risks left in the deal ..... one is PRC approval, the other is timing (two months from cash distribution)

      the closer we will get to the d day, the more likely sp will step up from $2.30 sp value, since it is realistic investors to think that there will be some value left in CMM as a going concern after the dividend will be paid out.

      hou much is hard to say but I would think less than half a buck, more than a dime.