For those suckers who didn't cash out before the record date for the special dividend, you're going to have a nice little surprise when you file your taxes. A $0.65 dividend at ordinary income tax rates means you will pay out-of-pocket nearly $0.23 per share in 2009 taxes (assuming you're in the 35% Federal bracket). Way to go Bimini! Give your shareholders $0.115 in cash dividends (or $0.075 after-tax) while socking them with up to $0.23 per share in Federal income taxes on top of any State income taxes. Net, net after-tax - Bimini's $0.05 and $0.65 dividends just cost each of their shareholders approx. $0.155 per share in cash out-of-pocket. Maybe Bimini is trying to be patriotic and help out Uncle Sam!
That is why people are selling this stock. You have to recognize the negative capital gains by selling at enough of a loss to offset your gains to avoid paying taxes. The sell-off will continue as more people realize how much they owe, and that the standard dividend of $0.05/share per quarter has just been halved.