RE: I''''m inI sat on the bid at $1.92 for two days and finally got filled today. I have owned a core holding in EAS for 2 years since the 45 cent range but picking up a few extra traders so close to the dividend announcement is a no-brainer as far as I am concerned.
When CS announced they were going to spin off a dividend of shares in a new junior, the stock was still very sluggish for a few weeks until the announcement of the date of record, and then it nearly doubled in a few days after. I think the same thing will happen here with EAS. I have posted in the past that the NAV for the company, even after the deal closes and the dividend is paid out, will probably amount to several dollars per share just on the remaining properties and the cash that will remain in the treasury.
My expectation is that the stock will go to more than $3 once the amount and date of record for the dividend is confirmed. After it goes ex-dividend, the stock will sell off back down to the low $2 range again. Shortly thereafter, we should get news flow from the drilling going on right now in Mongolia and Indonesia, and the company will go on to set new highs in 2008. Suffice to say, I do not have believe there is much risk for buyers at the current price range. You get half of your entry price refunded immediately in a dividend, and then you participate in capital gains as the company is very strong going forward and the bull market for juniors remains in effect.
cheers!
COACH247