Doug. Nadworny re: MCIP: Too tough for me to figure.
I had a small position in a company that was bought by WCOM for stock. I've kept the WCOM stock, and I received a few shares of MCIP recently.
I see where WCOM says MCIP ought to be able to keep paying their current dividend, and maybe with WCOM controlling things (MCIP is a tracking stock), they will continue.
On the other hand, my experience is that when dividends are so extremely high and I buy the stock... I generally get hurt. Another negative for me is that the distribution was only a very few shares (not worth much at $13/sh) of MCIP for every 100 WCOM. So if most people are like me they might be doing as I did which was to sell MCIP just to clean up the account. (I rejected an alternative of adding to position to bring it up to a round lot.) Such dumping by investors may put temporary pressure on the stock. So back on the other hand, there's then the spinout view that the selling by small stockholders creates a very good buying opportunity IF the stock price becomes undervalued.
Right now, I'm having enough trouble holding on to WCOM. I doubt that I'd be a buyer of MCIP. If I could understand MCIP and its business prospects better or burn rate or what is important with regard to this stock/business, I might reconsider. Now I can't, so I pass.
Jmo, and I've been wrong, many, many times. |
