.....This appears to be a bonehead move as you say for the short term investor. If you are under water, as I suspect nearly everyone is, then it might be wise to take your lumps now and get on. If my calculations are correct then I should end up with an additional 4k shares. The only problem that I can forsee is that if JER cannot pull this company out after a couple of years then the stock give away is a tax. I'm so far under water that I will wait it out, or lose it all. Might get more shares and a few more nine centers along the way!
I'm in a similar situation. I bought this as a dividend play, but some on this board don't think it's good for that any more. Personally, I don't know, and for the little we have in, it's probably worth waiting until Q1 or Q2 to see if it can run up, or keep a decent dividend.
However, I'm going to advocate taking a short position after the ex-div, and eliminate that position around Feb 1. I think this 'paper' dividend is a bonehead play by management, and I intend to take advantage of it.
Let's think this through. If I'm long, I'm going to end up getting no cash (let's say the .09 also goes into stock), but I get a tax bill, along with the extra shares. If I'm a short, they're going to take 1/2 my shares (as payment), but I'll probably get a tax credit. Then, when the share price plunges, I buy back my shorts, and make a profit!