FutureFuel Corp (FF)

[Skinny Mulligan]

$2.50 Special Dividend !!!

I should have been paying attention to this. People don't seem to understand how dividends work. The day FF announced the dividend the price dropped over $2. Then looks like the dim wits realized their error, then the price went up $5 in the next week. Then dropped back down again $5 right after the Ex-Date.

Didn't really really catch on the insanity until I read an article today that today looks like a great time to buy FF (in my watch list), because of this drop. After reading I examined more closely. NO, it's not a good time. The $ is exactly where it should be.

A company declaring a dividend does not increase the value of the stock. The price should drop; at the EX-DATE. If you took the price before the insanity and reduced by the dividend, that's the price it is no. That's not a bargain; that's effectively the value it's been trading at.