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Or they RNS suspension of trading pending RTO announcement.
Most of the buys today will have been matched to those sells and so holding the SP back.
I guess they decided to take the cash and not worry about whether it's a capital payment or not. Especially if the sale is a CGT Loss as opposed to paying tax on a dividend (in their mind).
Slowly, I think you've pretty much nailed it there. Good post. Tomorrows opening will be very interesting!
You are correct Billy. Buy today, you get the dividend. Sell today, you don't. Buy tomorrow, you don't get the dividend. Sell tomorrow, you still get the dividend.
So the share price would drop at the open tomorrow by whatever amount the market has priced in for the dividend. Of course, the price fluctuates, so other factors may come into play. If they announce an RTO tomorrow morning, that would skew the amount the share price drops (or stop it dropping at all). But apart from factors like that, the share price drops at the open tomorrow.
The question is: By how much. The bid is still below the dividend. That tells me that the market is not pricing the dividend at 1.8p on the share price. Otherwise 1.8p would be the absolute minimum anyone would sell for. That must mean that there is still some skepticism out there whether the dividend will definitely be paid. Personally, I think that risk is infinitessimal, but if everyone thought the risk was zero then 1.8p would be a clear floor for the bid price.
So the share price will drop by whatever part of the current share price is explained by the dividend. Obviously not 1.8p, because you cannot sell for -0.02p tomorrow. We'll find out in the morning
If you sell at 1.8p today then you will not hold the share when it goes ex (tomorrow start of trading) and as such you will not receive the dividend.
My understandings is that tomorrow morning the shares will start trading without the 1.8p dividend built into sp so with todays sp about 0.02p ??
Is that correct?
DYOR
BB2.
Don't forget the T2 settlement. The ex-dividend date is the date when it trades without rights to the dividend. That's 1st June according to the RNS. Buy on 1st June, you don't get the dividend. That's because you won't hold the stock by close of play on the 2nd, because your trade settles on Monday 5th.
Welsh,
AMC goes Ex tomorrow (start of trading) so I understand the last opportunity to buy Cum (with) dividend is before close of business today.
DYOR
BB2
Thanks Sec2Aux
“Shareholders of record at the close of business 2 June 2023 will be entitled to payment of the dividend projected to be 14 June 2023”
Last day tomorrow?
Thanks Gazzleberry. JLP that's a blast from the past.
If I sell my shares today would my broker still receive the dividend?
Gazzleberry,
You have been fairly critical of the BOD and with good reason, so what is making you want to 'invest' more? I am guessing you see a few opportunities to trade for a quick profit?
Quite surprised this didn't break 2p at any point. Ex div tomorrow so will be very interrsting as to what residual value the market assigns given it's pretty much assigning 0 now
If it is Zero I'll buy the lot. Lol
On the current SP, the Ex-Div price would be ZERO!
I did think the SP would be Circa 2p at this stage. Doesn't seem to be much buying pressure on the final day before XD.
Gazzle, in fairness, most company's dividend announcements don't come with a strong warning that you need to register your bank details in order to receive the dividend. That is an unusual section to put in the RNS, and that may be what freaked a few people into thinking they have to take some steps. Maybe the bigger surprise is that people don't get what a nominee is, and what they do for you.
Anyway, one more trading day for people to buy this before it goes ex-div
Damn right, I should have put this in my ISA.
Just a shame this year's dividend allowance is only 1k
XO have confirmed I needn't do anything and the dividend will be paid as long as I hold shares on the ex date
The SP should drop by circa 1.8p, needs to get a wiggle on up to circa 2.2p before then to leave the residual value of circa 0.4p. Starting to move a bit now and should get there over the next couple of days, great trading opportunity!
You could still buy at sub 1.8p last week, should be a good 10-20% in just a few days.
I had a similar conversation via chat last week and I referred the agent to the RNS which you would assume someone with Halifax nominees is employed to read. Not sure AMC will be writing to nominee companies to tell them this. Will need to wait and see I guess
I’ve been on with Halifax this morning.
Although they have t had any formal communication from AMC and won’t do anything until they do, this is the response which is clear
“ the registration is for shares directly held..as in paper certificate format..you dont have that format with us so no need to make any registration. Any event we would deal with on your behalf”
Check with Halifax. I checked with ii and they’re handling it all. I hold via my ISA it’s tax free, I’ve clarified the matter with my accountant on the ‘special dividend’ also. Tax free vehicle.
I will continue to hold my shares post divi to see what the future brings. It’s Sod’s Law that most VTLH will sell all and then it will take off!