Let's talk about dividend...
Let's assume that I hold 100,000 shares of USSE.
After Dec 1st I will hold 100,000 shares of USSP as well, because it is 1 for 1 dividend.
On November the 30th, the close is 40 cents and at the open of the next trading day we have # 1 or # 2
#1: USSE at 20 cents and USSP at 20 cents: No problem, same account value.
#2: USSE at 35 cents and USSP at 05 cents: No problem, same account value.
Now that where it becomes tricky.
Let's assume again, on the 30th I sell 20,000 shares of USSE at 40 cents, then I get back 8,000$
Of course now I have only 80,000 of each after Dec. 1st
Now I want to use the 8,000 dollars back in the game.
Situation #1: I can buy 20,000 shares of each or any combination. The combined number of shares is still 200,000.
Situation #2: I buy 8,000$ worth of USSP at 5 cents (160,000 shares)and then now I have 80,000 shares of USSE and 240,000 shares of USSP.
I know at the end the account value remains the same, but should I buy more shares of USSE before the dividend day, It looks I rather sell some. ????
Sorry if it is not clear enough.
I think we need to know more about that dividend/spinoff thing, and it is probably why the pps is not rising.
Any feedback
As usual, IMHO
CL