Why XIN Sets Up Well For The Next Several Trading Days
I think the Monday/Tuesday market closings work to XIN's advantage. My opinion was that XIN was still on the downslope from its national news mentions, so I was guessing Mon and Tues were going to be down days.
However, today is the dividend payout day, so depending on the speed of your broker, your cash should hit your account between today and Friday. The total amount of the dividend is approximately $3 million, or enough money for DRIP's and regular re-investors to purchase about one million shares of XIN.
Of course, not all of the dividends will be used to buy more XIN, but I wouldn't be surprised if half of it were used that way. That means we might expect 500,000 shares of buy side pressure over the next several trading days.
These things are never exact copies of one another, but last quarter's dividend payout date was August 20th. The closes for August 20th and following days were:
August 20: $2.92 (up 1 cent)
August 21: $2.92
August 22: $2.99 (this was the highest volume day of the dividend re-investment period, about 735k; if the pattern holds, it suggests Friday).
August 23: $3.00
August 24: $3.00
If this quarter's like last quarter, we might expect 10 cents (ish) of upside pressure from dividend reinvestments over the next few trading sessions.