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Non-Tech : Special Situations Value Investments

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To: J Mako who wrote (4)11/13/2011 6:09:42 PM
From: NikhilJog  Read Replies (1) of 7
 
mako - great question! how did you find my blog? You need to realize that the div. is before the spin. Lot of firms will hold the shares till the spin, so that provides a base. In addition, they are buying back stock, another floor.

So, i don;t think the shares will fall by "exactly" $3. I am long it at $17 and i think SLE should go to $23. Now my point is, either you can wait till the record date, OR get in the stock, let it rise to $22-$23 and sell out before the record date taking profits off the table..however, don;t forget, that tax on div. is lower than capital gains..
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