MY THOUGHTS FEEL FREE TO RIP THEM UP7 Dec 2020 10:04
Good morning, after reading the many good posts on here during the past few days, I have a couple of thoughts to put to you.
Firstly there has been talk of what the company will have in the bank but what if the offer of the dividend is not fully taken up? Folk on here have a said they will be selling before the ex dividend and there has been some selling already.
Secondly the dividend payment in unique, in so much it is not the normal 10% or less of the SP. So how can we pre judge that the SP will be reduced by 42.75p as some on here would have you believe. The influx of the cash pile had little effect on the SP , in fact over days it reduced and the MC was at a big discount to the cash in the bank. on the announcement of the dividend the SP was around 36p and shot up by around 18p to 54p ish. So my question is how can you take away 42.75p when it was never put on the SP to start with? Since Friday morning the SP has been all over the place and the amount of buying, with some showing as red ,is the market keeping a reign on the SP to limit what might happen ex dividend. I think that the SP should be reduced by 18p but there again I may be a mile out.
I have been in this game for a long time but I have never come across a dividend that was bigger than the SP. Please consider my thoughts and feel free to trash them if you wish, I will not be offended,