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Alias Born 09/25/2009

Re: novicetrader post# 376

Friday, 11/20/2009 7:09:43 PM

Friday, November 20, 2009 7:09:43 PM

Post# of 1208
Just remember to check the chart to see what the price was when they made the PR because right after the ex date the stock automatically drops the price of the dividend. normaly unless you buy it right when they announce the div you will lose because the MM's take it up the amount the div pays. From what I just looked in the chart DHIL was trading at $52.00 to $54.00 when they did the PR, now it is at $66.00 which means if you buy it at $66.00 on the ex date it will be $56.00. Then most likely there will be a sell off to the 52 - 54 range which means you will lose 2 to 4 dollars a share.
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