The stock will not go down as much as $4. This is just cash distribution not stock distribution. Eventually the stock price will be recovered to the real market value of the company. Dividend comes from retained earnigs and it does not affect company's current net income.
What happened to Microsoft when they paid out $3-5 special dividend? Anybody knows? there might be a temporary dip in the stock price, but after that, stock price recovers. Check MSFT price history.
This is just reduction of cash. Company's value is not determined only by cash.
The P/E ratio = `1.37 (which is absurdly low- check this # against other stocks as a comparison. You won't find many. Very few to NONE are in this most enviable position indicating that the stock price is inappropriately low considering earnings. Of course, much of the current special dividend cash is from discontinued operations [ sale of stations. ]) Thus, this company has been dramatically streamlined to be more efficient. If this P/E is maintained after the special dividend payout, expect heavy buying by savvy people that know what this # indicates.
The direct info. I got from my brokerage & Emms was that if you own Emms as of trading day 11/24..(buying it by close of all trading (including after hours) on 11/22...Then you will get the dividend. Stock held in street name at brokerage (as most of us do) qualifies for dividend even if you buy on the 22nd.,as long as you own it on market day 11/24. Now...what Im wondering is..those who are short for any silly reason>>> to keep the stock down, must also cover shorts by end of market on the 22nd, or they will be paying the dividend back out ouf their pockets. I would imagine what we are seeing lately could be some of those shorts waiting till last minute to cover, but must avoid paying divy, perhaps hoping people will sell stock down some before 22nd, then cover. I dont see much downside from here. Divy is TOOOO close. Look for upside from here as all in the know feel deadline coming. Then I bet we see stock do well after dividend. 8 or 9 bucks is just crying out takeoverrr. Should move higher quickly I would say. I just bought more getting ready for 9th inning...ALLL Aboardddd!!!!!????..Jake from Indy
That's not what their press release said, are you sure about that? It says shareholders of record on Nov. 12th, I think I will call my broker today.
INDIANAPOLIS (AP) -- Media company Emmis Communications Corp. on Thursday locked down the payment date for a previously announced $4 special dividend. Emmis, which owns publishing operations and television and radio stations, said the dividend is payable Nov. 22 to shareholders of record on Nov. 12.