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Ecomike

06/03/13 7:05 PM

#245 RE: Enterprising Investor #244

What do we know here and now for sure? Is this a screaming buy, if so why? I have not followed this closely enough. IIRC there was some kind of new company stock dividend? Bring me up to speed please.
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RBKissMyAs

06/03/13 8:13 PM

#247 RE: Enterprising Investor #244

Yeah, I saw the PR's. To have the same dividend as before, you obviously have to own both BUT, since the dividend is on the number of shares, the payout is half what it was before the spin off. For example, 24% of 4000 = 960. 17% of 2000 = 340. 7% of 2000 = 140. 140 + 340 = 480 = we got reamed on the dividend on this deal. AND, if one had the "gift" of NZR to a cash account, one gets to pay taxes on that! Luckily, mine is in an IRA.