Dividend 15 Split Corp T.DFN

Treasury stock issue prediction

[navgod]

Given the current premium above NAV I would expect a new issue of shares within the month. DFN is the only Quadravest issue in position to do this and management will be getting deperate. So no reason to buy this until after the issue. FYI have small short in DFN.

[bubba9]

I don't think they would do it until after the record date and I think that the dividend earned will be more that the sale price drop. Just my opinion obviously...

[AnnaTecson]

What does that mean, can you do a short and sweet explanation please? Why would they get a new issue? To raise money? Why will that decrease the stock price? Thank you

[thinkyourmoney]

I  am sorry but I think you are misguided.  Why would they put out a new issue of shares when they just put out a buyback 3 months ago?  It has been noted by another poster that they have cash as they did not dispurse dividends for several months.  Friday is the 3rd Friday of the money when all shorts must be covered.  Are  you feeling the squeeze?  I thought you

[navgod]

My post seems to have generated some interesting responses which I will try to address. 1) I meamt to say "within a month" ie 30 days in terms of my timeline. 2) the dividend is irrelavent to the dicussion - divi paid nav drops 3) the price drop for the capital shares on a treasury issue in these shares is usally around 30-40 cents 4) the reason Quadravest does issues is to increase

[EdPaquette]

Yeah navgod, you're a good one.  I moved out of dfn into sbc, and will buy back into DFN when it drops below 5

[PatFromGrove]

I do not think they will issue another overnight offering. They used to regularly do that, and the SP dropped instantly. Last October 30, they issued an At-the-Market (ATM) equity program that allow them to purchase shares at the market. That way, they didn't have to issue shares in a lump and drove down the price, and they didn't have to pay 5% commissions to the underwriting banks that

[PatFromGrove]

I was mostly right in saying Quadravest would not issue another overnight offerinng. They didn't for the A share. That would have caused a significant drop in the SP and irritated (p-off) many investors, again. I am glad they are not doing that, and hope not in the future. I can live with correcting the preferred share ratio.

[petebrown1963]

If you are short a dividend-paying stock, you have to pay the dividend out of your pocket every month. And that ain't an insignificant dividend...

[navgod]

IF you are long a dividend -paying splitshare,you have your NAV reduced by the amount of the dividend and that ain't insignificant .... I am trading this on the basis of its premium over NAV - a dividend that is not based on earnings or cashflow is irrelevant. I have an idea -- let's declare a special dividend of say a $1. Post dividend the NAV would drop to sub 4.50 - selling price would

[petebrown1963]

The NAV is insignificant. The NAV is the breakup value of the shares, but if the shares don't get broken up, you don't get your NAV. Very rarely do split share companies breakup and return cash. I'm having trouble coming up with a single Canadian example.  The share price follows what investors will pay for the dividend. This depends on three factors: 1) The main one being the

[thinkyourmoney]

No need indeed...spot on prediction navgod.  However, Quadravest did drop this Offering right in the middle of the banks' earnings parade and it looks like the big 3 that are left should do well.  Price is already up $.19 since your post and should get a boost over the next two days from RY, CM and TD.  The offering is only of preferred shares and I couldn't find how many

[Canamex]

Thumbs up on this. Long holder of 10400 shares