Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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@GG - so the drop today because the DIV has been processed?
to invest in?
I mentioned this previously as the RNS stated the div would be paid to those "on the register" at 1 September 2017 and noted the ex-div date being 31/08 on HL. Would have had to be holding yesterday to be officially on the register as at tomorrow's record date and has indeed gone ex today.
I thought the same! But HL has the stack as ex-div today, so any buyers today will not be entitle to the dividend. Time difference? However pleased the drop is not 8p!,
Did I miss a day? Was expecting this drop to happen tomorrow after the dividends. People buying today still get the 8p a share if they hold at close yeah?
A couple of bigger buys here today.
Sorry about that. Should have read first b4 posting. 'may not be wise since you will (may) be buying after spike when Divi is announced' gl
As all of you are aware now, after the ex-divi date the so will fall, probably returning to its previous RNS level. I would point out, that trying to sell at the market open price, hoping to get 16p, will result in disappointment since the MM's are not mugs. However, please bear in mind that the co has stated it's intention to close, or monotise all investments and not perdue any further ones. There may be an outstanding amount owed to the co. from Fields, from whom the £10M was received to pay this recent Divi. There are still 11 O/S investments, which may provide further income before YE Hence, selling after ex-divi date may not be wise since you will buy after surgery he spoke when next Divi announced
I believe the close of the day before was 8.5, but you are right in principle. The reason for the drop is that they are not taking on any extra cases. JIL's business income comes from the settlement of high value litigation. Once that is done, they get a windfall, and then pass this on to the shareholders in the form of a dividend. They have settled several high value cases and not replaced them, meaning that the overall net asset value decreases once they have finished.
ive also just realised when the dividend was announced the share price shot up 8p so you are infact paying for the drop when buying in at todays 16p level. So it pays drops back to 7p and you have to wait for the SP to rise from that level. does anyone know why this plummeted from 70+p ?
As far as I'm aware the following would be the case: Spead betting - The dividend amount is automatically included in the spread bet price. So for example in the case of JIL the amount you would probably be quoted is 8/8.5p, not the price it is now. Shorting - If you short the stock, then you would have to pay the 8p dividend per share back to the lender of the stock when you settle. Meaning both would be pointless in this situation. If that makes sense?
Crofty sorry I do not understand what you mean by this "you would then owe the 8p dividend per share to the lender." Who is the lender here? Who would owe who money?
Already answered this question. If you did, you would then owe the 8p dividend per share to the lender.
also if the share price drops after the dividend is either announced or payed why could you not just spread bet that share to drop?? as you always know its going to happen?? ( not a spread better normally, just a thought i had if you know why way the market is going to go) seems a win win?
i would expect the share price to bounce back pretty quickly, this is looking like a good investment. Fundamentals look good
Here is my example - If I hold 50000 shares at 15.0 pence. £7500.00 So I will get back in dividends 8 x 50,000 = £4000.00 My remaining shares 50000 x 7.00 = £3500 worth now as the drop in price due to the dividends.
Good question, but the answer is no. If you short a stock over this period, you would actually have to pay the lender the 8p per share for the dividend ;).
Surely then it would make sense to short if one can (don't know much about shorting TBH, and half my knowledge comes from Billions and the big short lol)
One should never sell after the Xdiv date as another div will probably be announced by Sep or Oct. If you want to sell, the best day would be on the 30th Aug at 52 weeks high if possible. If you sell after the Xdiv day, you will be entitled to the dividend but your holding will fall by the same percentage of the div.
You are correct but please bare in mind the stock will usually drop in price by the amount of the expected dividend. (lets see if my comment gets reported/deleted) Cheers
GodWiling from what I understand if you buy before close of play before Aug 31st you will be get 8p per share in dividends paid on the 29th. You don't have to keep the share till that day so you can sell them on the 1st of Sept if you wanted.. Someone correct me if I'm wrong. That's how I read the RNS
Supposed 1 codes are utter nonsense...
If you sold on the 1st you would still get paid the dividend. No need to hold longer than that if you dont want to.
1 code for the believers in rns updates. We all know one is coming though
Sorry for the novice question - could you buy on the 28th of Aug, sell a few days later and still get dividends or would you have to be in till the end of Sept when they actually pay the dividends??