This may turn out to be the biggest volume day since March of last year with over 1 million shares traded in a couple of hours. Perhaps a big buyer wanted in and thus took out all the stops to the upside. Now that they have their position things are back to normal. JMO
The only question I am asking myself is will WMC be able to maintain the .80 dividend in 2014. If the answer is yes, the post X date price of around $15 will return over 21% going forward.
When people look at WMC on X date and see that they have paid out $5.32 to shareholders over the last year, will they see the adjusted opening price as a buy or a sell? For example, lets say WMC closes at $17.50 on the day before X date. $17.50 minus $2.35 dividend, adjusted for X date to $15.15.
I think most people will see it the way I see it. I would be a buyer at $15.15, not a seller, so I think the adjusted price of $15.15 will open higher and move higher and that is why I will hold my shares and take the dividend. JMO
You wrote: (No one is getting a $2.35 dividend.) Try and tell that to anyone who is sort WMC on X date as they will be debited $2.35 out of the shorts cash account. Who do you think will get that $2.35 ounce it is taken form the shorts account?
that's a little over 17% of the float. we could see a short squeeze over the next couple of days as shorty runs for cover. $2.35 is a lot to swallow if you are short. WMC is the star of mreits. JMO
Sentiment: Strong Buy
Scottrade is showing 12/26 as ex date, if that is correct, the 24th will be the last day to buy to get the divy. This will leave a short time from announcement to the 24th. If they announce today after close, you will have 2 full days and one partial day on the 24th. Because of this short time I do not expect a large run up into divy. JMO