"Where is that "cwn600" to see what he's got to say now?"
You want me to clear up your confusion, do you? Sure. Since you can't figure it out for yourself, I'd be glad to.
"I've been a GERON shareholder for about 4-5 years, I sold June 26th and got back in July 8th, that shouldn't matter cause I was a shareholder as of May 28th, 2014."
Being a shareholder on May 28th doesn't have anything to do with it, since you bought back in before the ex-date. It is the ex-date that determines who gets the dividend, not the record date, and the ex-date has not yet been established. Why do you think the company said today that any shareholder of record on May28th who sells their shares before the ex-date is also selling their right to receive the Asterias shares? When you sold GERN on June 26 you also sold your right to the Asterias spinoff. But you bought back your right to the Asterias shares when you bought GERN back on July 8th. The right to the spinoff is attached to the GERN shares until the close of trading on the distribution date. That is the purpose of the due bills.
Have any of those facts penetrated your closed mind?
"As soon as institutional buyers start stepping in the price will move well above $3.00"
Why would institutional buyers be stepping in if they haven't already?
"Who declares a special dividend if they are not sure about the ability to hold an 11% regular yield?"
The special dividend had nothing to do with confidence in an ability to hold an 11% yield. It is the market, through the trading price, that determines the yield, not the company.
The special dividend had nothing to do with having confidence in maintaining the same regular dividend level either. It was issued purely for legal reasons, as their press release at the time said, "The Company is making the special dividend in connection with REIT distribution requirements," either to avoid paying taxes on the money at the company level or to maintain their REIT status.
"dividendinvestor has aug 15 as record date. That's unusual to be a month before ex
The reason the ex-date for the ADS is Sept 22 is because this is a conditional dividend. It is dependent upon shareholder approval at the company's annual meeting on Sept 18th. No matter how likely the approval, the NYSE doesn't allow ex-dates to be set before the conditions of a conditional dividend have been met.
On June 23rd I tried to correct your misunderstanding of the value of the NAO spinoff and you rejected my explanation. Today the company announced that the value of NAO spinoff will be determined exactly as I explained.
On June 23rd, I said, "The value of the NAO shares was $15 at the time of the stock dividend announcement. The proportional value of the spinoff per NAT share was 13 cents. The value of NAO shares is now 18.36, or 22% more than it was at the time of the stock dividend announcement in January. If the NAO shares are now worth 22% more than they were at the time of the announcement, then so is the value of the stock dividend. The dividend was valued at 13 cents per NAT share in January and is now worth 22% more. That's 15.86 cents."
NAO stock has continued to rise, so the value of the spinoff has continued to increase in the same proportion I described, as noted by the company this morning: "The dividend is calculated on the basis of $0.13 to be distributed per NAT share, and the November 2013 NAO offering price of $15 per share, implying roughly one NAO share per 115.4 NAT shares. ... Since NAO`s November 2013 offering at $15 per share, NAO shares have gone up in value significantly. Based on the most recent NAO closing price of $20.15, this increase in the value of the NAO share is equivalent to about 34%, implying a total value of the dividend-in-kind of about $0.17 per share."
"you have to own the stock for 3 days to get the div."
No, you don't. You need own it only overnight if you bought on the day before the ex-date. If bought yesterday, you could sell today and still receive the dividend.
" this is the information I have gathered and I believe it is accurate."
Well, it's not.
"1) You must own the stock by SEPTEMBER 12, 2014 in order to collect the ($.70) per share dividend on September 30th"
No. You must own the stock by September 9th to collect the dividend on September 30th. But if you sell your MSN stock before October 1st, you will be obligated to forward the dividend to whoever held the shares as of the close of trading on September 30. That also means that you can buy MSN as late as the 30th to get the dividend but the transfer of the dividend from the shareholder of record's account to yours will not happen before October 3rd.
"2) In order to officially own the stock by SEPTEMBER 12th you must actually have your purchase order in on September 9th. Otherwise you are not eligible for the dividend."
Wrong again. Any sale from September 10th through the 30th includes the right to the dividend. That means you can buy up to and including the 30th and get the dividend.
"A friend of mine who specializes in dividend stocks brought this to my attention, perhaps someone else on this board can confirm this is true?"
Your friend doesn't know what he's talking about. Why don't you confirm it for yourself? Do a google search for "deferred ex-date" and you'll find multiple explanations. And none of them matches your friend's.
"Must be "owner of record" on ex-date to get Div."
No, you must be the owner of record on the record date to get the dividend. The ex-date takes into account the three day settlement period to become the shareholder of record on the record date.
"is acer computers apart of emerson"
Not quite. Acer has higher sales in four days than Emerson has in a full year.
What led you to think it might be part of Emerson? Or are you simply looking for a reason to hate Emerson, considering that the Shift, period and question mark keys of your (Acer?) computer keyboard don't work?
"a spinoff would be interesting and would likely spur mass buying before cut off date as who would want to miss out on free shares of new company"
Spinoffs are not free shares. Are you not aware that the value of spinoff shares is deducted from the price of the parent company's shares on the spinoff ex-date?
"YOU ARE 100% wrong with your statement above."
No, actually he's 100% correct. Why in the world don't you ignorant posters read the stock exchanges rules for distributions before you pretend to know what you're talking about?
"Are options EVER adjusted because of a dividend payout? Nope"
Sure they are. Do a google search for "OCC Information Memo 27649" and it spells out that sometimes, if somebody of authority feels like it, certain options will be adjusted, but then again, maybe not, because the committee may decide that they don't feel like it after all. Like maybe they're late for brunch or something.
"Think you have to be in for 3 days before ex date."
No, you have to buy the stock three days before the record date, not the ex-date. The ex-date takes into account the three day settlement period to be a shareholder of record on the record date.
"If you bought after May-28 you do not participate in the distribution no matter what someone says."
Even if the someone is FINRA, the governing body of the stock exchanges?
You need to study up on how distributions of spinoffs work because wallstreetwarrior is correct; you are not.
You can be sure the May 28th-fixated will be back. Maybe not repeating their ignorance of the record date, but with new and equal baloney, pressing their cases with the fullest measure of ignorance they can muster.
And probably with new screen IDs to help them forget their past stupidity.
High-larious, ain't it?!
"the speculator who is short SPEX does not have to come up with the dividend himself."
Yes, he does.
"The dividend passes through the investor who loaned the shares to the person who is short, and the shortie then passes the dividend on to the current owner of the shares."
No. The investor who loaned the shares no longer owns those particular shares. Those shares have been sold by the short seller to someone else. The company then pays only the current owner of the shorted shares, not the lender and not the short seller. The lender of the shorted shares then owns phantom shares not recognized by the company; he owns only a promise from the short seller to replace those shorted shares sometime in the future. But in lending the shares, the lender does not give up his right to the dividend. The short seller is indeed obligated to pay the dividend on the phantom shares to lender. And because the lender no longer owns legitimate shares of the company, the dividends he receives from the short seller do not qualify for favorable tax status as dividend income.
"Dividends are NOT paid twice."
No, they're not. The company only pays the current owner of shorted shares, not the lender. That's why the short seller is obligated to pay the dividend to the lender.
"Investopedia is wrong, or your interpretation of Investipedia's post is wrong."
No, quite obviously it is you who is wrong. You need to study up on how it really works.
Standard procedure. When a company makes a distribution, whether in stock or cash, the net asset value of the company is instantly reduced by the value of the distribution. The closing price of the stock on the day before the ex-date is then marked down by the value of the distribution to reflect the reduction in value.
"Because it dropped heading into ex-div date."
No. The ex-date for the Diageo American Depositary Shares is September 22. The August 13th ex-date is for the UK traded shares only.
"this stock should be trading for about $4 a share. So say $3.30 even after you pay the divy. Market just has it totally mispriced."
That's what everybody on this board was saying in March of 2010 when MSN paid a 1.10 special dividend. Bring up a five year chart and see how that played out.