Those believing dividends should be a 1:1 exchange to stock price.....
So you think the payment of dividends should result in a 1:1 drop in stock price? You are nuts!
Dividends are a portion of profits, current and past, paid out to stockholders. Profits have a few uses: it can be reinvested in the operations of the business, it can be used to purchase new businesses, or it can be distributed to shareholders via either share repurchases or dividends.
TLAB investors are well aware that their purchases of other companies have mostly represented money down a rabbit hole, and the repurchase of shares has had little to no effect on overall share price using virtually any analyses. This leaves money for operations, and dividends to investors. Given the stingy history of dividend by TLAB and the industry in general, it is high time they kick in and REALLY share with stockholders! They have more than enough cash left for current and expanded operations.
Note that on an ongoing basis, dividends also represent the ability of a company to create cash, expectations for future growth, and a general bullishness by management. To think all of this should by fiat result in a 1:1 drop in stock price is insane.
Of course, this does not mean stock price will not fluctuate irrationally, such as TLAB is at the moment. The best move was to make an arb play at the announcement of the dividendand pocket the free money!