RE:RE:Special Dividend
ChamBid wrote: JayBanks, thanks for doing that little math equation. I like this stock as it is boring but keeps paying dividends...what's not to like?!
I think that the period for weighted average price started on Tuesday, March 8th until the 14th as they mention "preceding the record date" which is the 15th. We should not count the 15th. Small difference but I can't see it being too impactful.
You may be right, I always figure the record is taken after the day is over, which may be a wrong way of thinking.
If we ballpark Tuesday's action it seems like it likely was weighted in the high teens, but because of this 'weighing' is difficult unless you look all all the orders at each price, I've seen people post lists of these and I believe I've seen charts before that can calculate the market weighted averages (I've seen them on seeking alpha articles) over a specific period, but I think they are a tool behind paywalls and I don't have any sites I pay for at this point.
I also enjoy the boringness but love the share offerings to us shareholders, I think that's the most freindly way of raising money from new issues of shares, I wish all companies came to the shareholders first for financings and it should come before major bank loans, bonds and public/private offers. Dilution hurts and most of the time you have to be active to prevent it. When borrowing for a major project, why not come to the shareholders first to see if they can reduce the amount needed for borrowing and keep the leverage lower if it is supported by the shareholders and its a much better gauge of interest when people vote by giving their money and seeing the support from it. This is my only holding that has used this as a way of funding.
DRIPs are somewhat similar but I see it more about reducing payment outflows. I don't participate in any DRIPs as I like deciding where I'm going to put my money next and I may not be interested in purchasing shares at the price they are moving at. But is it correct DRIPs used to be 10% or 15% discounts where as most I see today are 5%? I think I seen one note during this earnings season that one company reduced it to 3% which was an odd decision. Anouther issue I have with discounted company DRIPs is when they are used in conjunction with share buybacks, because that seems un-shareholder freindly as it just changes the balance of power within the company and it doesn't seem benefit the shareholders not in the DRIP, most of the time I see more shares issued in the DRIP for the year than they buy back, altho I've seen lately some bigger buybacks like 10%. To me it seems like they should either DRIP or have buy backs.