Dividend 15 Split Corp T.DFN

DFN July 7 to 17

[Larry50]

What I don't understand is why no one is questioning how such a stable stock could close at $6.78 on Friday, July 7th, drop to $6.40 on Monday the 10th and close at $5.90 on the 11th hitting a low of $5.75 ($1.03 below July 7 close) and then jump back to $6.68 on Wednesday the 12th.  Clearly there was manipulation in the movement as a greater than 10% drop in 2 days makes no sense whatsoever.  And today the dividend is declared.  Clearly someone made money on these moves and a lot of investors panicked and lost a ton selling in fear of further drops.  Is this machine trading gone mad?  I can normally find a logical explanation in pricing swings but certainly not in this case.  Would be interested in hearing other theories or rationale.

[rabnud]

Post by Larry50on Jul 18, 2023 1:16pm 6 Views  Post# 35546345 DFN July 7 to 17 What I don't understand is why no one is questioning how such a stable stock could close at $6.78 on Friday, July 7th, drop to $6.40 on Monday the 10th and close at $5.90 on the 11th hitting a low of $5.75 ($1.03 below July 7 close) and then jump back to $6.68 on Wednesday

[Eoj123]

These are the risks in buying/owning high premium split commons

[Larry50]

Concentrated shorts caused DFN to drop roughly $1 in two days . . . okay (not really from my perspective).  What caused it to jump back instantly the next day?   Clearly investors selling at the upper end (perhaps those spreading these rumors) were able to make a sizable gain repurchasing at or near the bottom while panicking investors lost significant amounts.  I believe there

[Larry50]

Also, why did FTN (also from Quadravest) which includes many of the same stocks not suffer a similar fate?  It closed at $8.82 July 7th; $8.87 on the 10th; $8.89 on the 11th and $8.94 on the 12th.  No drop or bounceback necessary.

[Intellectual]

There was no danger of FTN missing a dividend, whereas such danger was extreme for DFN, something confirmed by the NAV update today. I don't believe for a second that any manipulation was involved. 

[navgod]

People selling and triggering stop losses caused the big drop. What rumours are you talking about? It was no rumour that the NAV was teetering on either side of 15 just a fact. 

[flamingogold]

Well, I'll take a stab at this... but you already somewhat answered it which is first and foremost "panic". The NAV, gernerously reported here daily, was clearly on the threshold for a distribution and for the first time since Oct 2020 it looked like it could miss where at that time it dropped below $5. No manipulation here imo... but mostly panic. Second on the list for the

[flamingogold]

And let me add... best line I ever heard "no one ever made any money panicking". So adding to that, buying the panic = profit.

[Larry60]

Larry50, the market is a fluid thing at any point in time.  For better.....or for worse. The REALquestion I don't understand is why anyone would be holding DFN caps at a $1.70 premium,  before even factoring in that the dividend, aka paying you back your own money, has a solid probability of being dropped next month.  If market is flat or down, likely will happen. Interested

[flamingogold]

I had to take a double look... Larry60 and Larry50... what are the odds. Sorry, just seemed funny not to mention it.

[AnEducator]

That is quite observant.