"That's bizarre and would be most unusual."
It's neither bizarre or unusual. In fact, it's standard procedure for spinoffs. That you are unfamiliar with the method only shows you don't know as much about stock trading as you claim to.
"Those shares MUST be distributed to those record holders as of MAY 28th. PERIOD."
And they will be. But while that's the end of your knowledge, that's not the end of the process.
"please reread that "notice from Geron", which also makes no sense."
It makes no sense only to people like you who refuse to educate yourself on the rest of the process. What you're overlooking is the due bill part of the process. Why don't you educate yourself on due bills. With the Internet, it should take only five minutes. Why do you prefer wallowing in ignorance forever over learning the facts in five minutes?
"I also am not familiar with this odd type of distribution. I've had a lot of div stocks, and the date of record comes after the ex-date, 3 days after the day that counts, because it takes 3 days for transactions to clear."
Why don't you do yourself a favor and do a google search for "deferred ex-date" and learn how and why it works?
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."
"The record date is the 28th of May"
Surely a man with a brain as giant as yours should know that the record date does not determine who gets the dividend, that it is the ex-date that does. And how come that giant brain of yours can't comprehend that the SEC as well as all the stock exchanges says you're wrong?
Yes, you are ignorant. You don't understand the process when due bills are used and you refuse to educate yourself. The company's statement that the Asterias shares go to shareholders of record as of May 28th is accurate but incomplete. To believe that their statement is a complete explanation of the distribution process is as stupid as reading the statement, "depress the gas pedal of a car and the car moves forward" and concluding that the car will forever go forward, never to stop again. Yet you're so secure in your ignorance that you tell me, "Know the facts before you post!"
If only you'd take your own advice, you wouldn't look so stupid when you post your ignorant baloney.
"I contend you get dividend if you held until ex date"
Yes, but change the word "held" to "hold" because the ex-date hasn't yet been established.
"and dividend will be delivered to record date holders"
"who may receive a due bill if purchased after ex date"
After the record date, not the ex-date.
So you already know about due bills. But keep in mind that the ex-date hasn't yet been established and the reason is because the dividend is contingent upon the merger with IQinVision, which won't be happen for weeks or months.
"wrong you have to be a shareholder of VII as of the close on 7/11/14 to be entitled to the one time cash dividend."
No, in cases of a deferred ex-date like this, the record date establishes only who the company will pay the dividend to. Beginning July 9th, all shares sold until until the close of trading on the payment date will include an attachment called a due bill which obligates the seller to forward the dividend to the buyer.
"We could see a 60 cent haircut by Monday 7/14/14."
If so, it won't be because of being ex-dividend, because the ex-date won't even be established unless the merger goes through.
No, it's not ex-dividend. Because it's conditional upon the closing of the merger with IQinVision, it must, by stock exchange rule, use a deferred ex-date. That means the ex-date will be the first trading day after the payment date. It gets all complicated with due bills, but the point is that it won't go ex until after the merger.
"Since the ex-div date (7/12) falls on a Saturday"
No, it doesn't. Ex-dates are never on a day when the markets are closed.
"I wonder if the actual ex-div date will be 7/11"
"If that is true, would I still receive the dividend for the shares purchased in the after hour today (Thursday)?"
"I have been involved with one spinoff and I have to agree with you on the record date (28th of May) being the cutoff date."
Oh, well, if you've actually been involved in one spinoff, then you obviously know every nuance to the distribution rules. This board is so fortunate to have you here to bring calm and order to the dispute over qualifying for the spinoff shares. But would it be too much to ask just one more little favor from you, markhare? Could you please contact the SEC and set them straight? They seem to have it all backwards, saying the exact same thing I've been saying:
"Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).
If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid."
If you'd be so kind as to do that one little thing, then the SEC can notify FINRA, the NYSE and NASDAQ that they all need to change their rule books because they, too, all say you're an ignorant blockhead who doesn't understand what he's talking about.
Thank you in advance, markhare -- you're swell!
Yeah, but ain't it fun watching idiots be ... well, idiots?
For a short while, anyway. It's like watching roaches scurrying around the bottom of a bucket, trying to find a way out, but they never learn, running around in the same circle endlessly (and probably shouting in little roach voices, "It's too late to get the Asterias shares!"). To the rest of us it gets old fast, but the roaches never seem to tire of it.
I wonder if I found a bucket of roaches -- no, not the ignorant kind on this board, but regular roaches -- and gave them the exact search phrase to use, "deferred ex-date," or the exact stock exchange rule (11140), if they'd educate themselves about who gets the Asterias shares before some of the blockheads on this board? My money's on the regular roaches.
"Wait to all the naysayers reply and dispute your post. They still think that you get AST shares if you purchase shares of GERN after May 28th"
It's too late to get the spinoff shares directly from the company, but it's not too late to get the spinoff shares through the due bill process. It's in the NASDAQ rule book under "11140. Transactions in Securities "Ex-Dividend," "Ex-Rights" or "Ex-Warrants"
Why do you, like rokky44, refuse to look it up for yourself and learn how it all really works instead of constantly displaying impenetrable ignorance? ...Oh yeah, that's right, your ignorance is impenetrable. I withdraw the question.
Her answer was incomplete. It's too late to get the spinoff shares directly from the company, but it's not too late to get the spinoff shares through the due bill process. It's in the NASDAQ rule book under "11140. Transactions in Securities "Ex-Dividend," "Ex-Rights" or "Ex-Warrants"
Why do you refuse to look it up for yourself and learn how it all really works instead of repeatedly clanging the false alarm gong?
The record date does not determine who gets the distribution, the ex-date does. With spinoffs, the ex-date is the first trading day after the distribution date. Since the ex-date has not yet been established, neither has it been determined who gets the Asterias shares.
These distribution rules have been in effect for decades. Why do so many of you insist on being ignorant of them?
"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?
"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.
"Check me here"
Well, OK, if you insist.
"Geron is waiting for NASDAQ to list Asterias on a "when-issued" basis."
Geron is waiting for Asterias to be listed, yes, but who is waiting for who isn't certain. It may be that the NASDAQ is waiting for Asterias to complete the application process.
"Only then can Geron declare the distribution date."
"After that NASDAQ will publish the ex-dividend date."
"We need to own GERN shares at the close of business on the ex-dividend date"
Aw, you were doing so good up to this point. As with any distribution, you must hold at the close of trading on the day BEFORE the ex-date. You can sell any time ON the ex-date and still qualify for a distribution.
"... and hold onto them until the day after the distribution date."
That part is right because in these circumstances, the day after the distribution date IS the ex-date.
"The Nasdaq sets the distribution date not Geron according to Anna."
Then Anna is wrong. The exchange sets the ex-date, not the distribution date. The distribution date is decided solely by the company.