Replies to post #5386 on A.I.M. Users Bulletin Board (AIMUSERS)

[Bernie Goldberg]

Pimco did the same thing with the government income fund. They did a one for seven.
You could say that it didn't have much of an impact on the stock. Initially the price dropped for a short period of time. Then the dividend was increased by 15%. Now the price is 10% higher than what it was before the rights offering. The rights offering took place in May. IMO your trying too hard to time the entry into a beautiful INCOME producing stock. If memory serves me correctly you have already missed two quarters of 10 -11% dividend. He who hesitates. Over the last year ALD has outperformed the SPX by 25% not including the dividend. Perhaps you should write down what your goals are for a stock and see if they are realistic.
Bernie

[Bernie Goldberg]

Hi,
Just ran a three year simulation on ALD. Not much activity just two small sells netting about about 30% profit on the original purchase. Over the three year period the dividend has increased steadily from $1.60 annually to $2.16 which amounts to a 40% increase. With buyin price at $20.50 you would be making almost 11% annually on your money today.


We are leaving town today and will be gone for two weeks. Taking a vacation to California. Main destination is Yosemite, with stops in Sacramento and Reno on the way home.
Bernie