AI
Wednesday, May 01, 2019 11:48:21 AM
I have owned HCC for awhile. Trying to remember how the last special went down...
Regarding a special:
If you sell right away, Technically your are getting your own money back, because the PPS automatically drops down to reflect the div.
You have to wait until the stocks pps returns back up to your purchase price to see the true value return of a special dividend.
My last purchase was at 29.11, stock adjusted on the ex date, I was paid the div, I waited some time to go back even on my position, which then made the dividend worth it. Then I sold.
Had I sold right away, I would have sold the position with a 6529.00 loss because the pps adjusted down, but I would have had a 6529.00 dividend (aka getting your own money back in the form of a dividend). Are you following me?
This chart shows the adjustment in a gap form - far left side.
6.529 div Paid last time with X date of 4/12
https://www.dividendinvestor.com/dividend-history-detail/hcc/
Numbers from Nasdaq history
https://www.nasdaq.com/symbol/hcc/historical
04/12/2018 23.98 open 24.56 22.5948 22.8 close 2,057,041 x date price adjusted
04/11/2018 30.71 open 30.8 29.36 30.22 close 1,791,274 last day to buy for special
So we had a 30.22 close on the day before Ex - and a 23.98 open on the ex date when pps was adjusted to reflect div
30.22-23.98 = 6.24 difference(div adjustment with pre market activity)
Just pointing that out.
Regarding a special:
If you sell right away, Technically your are getting your own money back, because the PPS automatically drops down to reflect the div.
You have to wait until the stocks pps returns back up to your purchase price to see the true value return of a special dividend.
My last purchase was at 29.11, stock adjusted on the ex date, I was paid the div, I waited some time to go back even on my position, which then made the dividend worth it. Then I sold.
Had I sold right away, I would have sold the position with a 6529.00 loss because the pps adjusted down, but I would have had a 6529.00 dividend (aka getting your own money back in the form of a dividend). Are you following me?
This chart shows the adjustment in a gap form - far left side.
6.529 div Paid last time with X date of 4/12
https://www.dividendinvestor.com/dividend-history-detail/hcc/
Numbers from Nasdaq history
https://www.nasdaq.com/symbol/hcc/historical
04/12/2018 23.98 open 24.56 22.5948 22.8 close 2,057,041 x date price adjusted
04/11/2018 30.71 open 30.8 29.36 30.22 close 1,791,274 last day to buy for special
So we had a 30.22 close on the day before Ex - and a 23.98 open on the ex date when pps was adjusted to reflect div
30.22-23.98 = 6.24 difference(div adjustment with pre market activity)
Just pointing that out.
"Then there was a woman, a lion of a woman."
