RE:If you haven't already enroll in the DRIPGood day Grizzly Bear,
I had again my daily load of C2H5OH for breakfast this morning and can now employ my brain – or whatever remained of it – to perform a process called “thinking”, and here is what I came up with….
The DRIP was a great option but it is NOT anymore!
The discount is gone now and the fact that they purchase required shares on the open market – as opposed to issuing new shares - means that a sophisticated trader – and I assume that U R one of them – can accumulate some shares before Corus’s treasury places a buy order.
Thus, such predictable moves allow for a relatively easy market playing where one can buy, let say at $6.00 per share and sell at $6.10.
Much it is not, but if one acquires 4,000 of shares and then sell them in 4 chunks (so as not to put down pressure on selling price by placing one sell order for 4k) the smart bas-tard would pocket $400 less commission virtually risk free.
Since the market is practically a zero sum game, if one gains there must be someone who loses, the shareholder participating in DRIP is left holding the bag.
If I recoup my substantial loss on Corus – inflicted by following advice of the guy who calls himself “extrremerisk” at the beginning of 2018, I will happily invite U for a lavish celebration. Needless to say the drink of the day will be vodka followed by more vodka.
I hope U would sign in :)).
Griz_Online wrote: The way it works now they buy shares in the market instead of issuing new = no dilution for shareholders.<br /> <br /> <ul style="box-sizing: border-box; margin-top: 0px; margin-bottom: 35px; caret-color: rgb(55, 55, 55); color: rgb(55, 55, 55); font-family: Montserrat, Helvetica, Arial, sans-serif; font-size: 14px;"> <li style="box-sizing: border-box; font-size: 16px; line-height: 1.8;"> As permitted under Corus' Dividend Reinvestment Plan (the "Plan"), in lieu of issuing new shares, Corus will satisfy its share delivery obligation under the Plan by purchasing Class B Shares on the open market. In addition, Corus will move to a 0% discount for shares delivered under the Plan.</li> </ul>
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