Bots Inc (BTZI)

[lesgetrich]

Just a word of caution, folks. When a company pays a dividend, the pps of that company will go down by the cost of the dividend. In this case they will be spinning off a large chunk of their assets. As an example, if the new company comprises 20% of their book value, the pps will go down 20% on the day the dividend is paid. However, that 20% will be transferred to the pps of the new company on the Ex-dividend date so your total invested value will be unchanged once you receive your new shares.

Perhaps the market is reacting to this today. On the plus side, the announcement of a new dividend usually runs up the value of the stock prior to the Ex-dividend date. So hopefully, we'll be adjusting from a higher pps. It's also possible that the pps will come right back up after the adjustment if the buzz is strong enough.

In any event, I just wanted to give everyone a heads up about this so you're not caught by surprise.