Hi guys, glad you added this thread to Ihub. I track dividends regularly, and the next post will provide my updates. But regarding NEGI, here is the PR:
"National Energy Group, Inc. Announces Cash Dividend to Be Paid on February 15, 2007
DALLAS, Jan. 22 /PRNewswire-FirstCall/ -- National Energy Group, Inc. (OTC Bulletin Board: NEGI) ('NEGI' or the 'Company') announced today that it has declared a one-time cash dividend on its outstanding common stock in the amount of $3.31 per share, or $37,041,051.50 in the aggregate, payable on February 15, 2007 to stockholders of record as of the close of business on February 1, 2007. "
The way I read it, this will be treated like a standard cash dividend. The record date, in this case, is meaningless. Shares will trade with the dividend until the end of day on Feb 1. On Feb 2, those holding shares will receive the cash, but the share price will drop by $3.31 from wherever it's at. So Feb 2 is the "Ex-Dividend" date, anyone holding shares before then is entitled to the dividend. You will still get the cash if you buy now, but it's not "free" because of the price adjustment. However, the share price could likely go back up rapidly, as that is a HUGE cash dividend (50%!!!)
AI
