TYPICAL OF A POST I GOT THIS AM...maybe you guys should answer him/them. The sooner you answer, the sooner they and others will feel comfortable buying thr stock. Some of these guys invest $10K - $100K in a single stock. I will keep his name anonymous, although I wish he would just post publicly....doesn't want to get insulted I guess, although most of you are patient, I must say.
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Dave,
Have been reading the back and forth posts on SI concerning the Div/Split. When I first wrote to you, I said the word split instead of dividned. You corrected me.
Well now it is a split. In ALL splits I have ever seen the trading price is effected by a split whether forward or reverse. In this case is it not the same?
Under the Dividend scenario, you were given free money as the share price was not effected (forget tax implications). Under the Split the price will be adjusted 3:2, you gain nothing. Now if this is a special split where shareprice won't be adjusted I think that needs to be stated and everyone will be happy. The concern I see is that The news release stating the Dividend stood until 4:00 pm May 29th, at which time IT WAS IN EFFECT.
THEN the company came out AFTER THE FACT and changed the terms. Now if the shares price WON'T CHANGE DUE TO THE SPLIT THERE IS NO PROBLEM. If it does however, there is a huge problem as the company made an announcement they were giving out money (no semantics here, that is what a dividend is), THEN BAM, no free money after the fact.
Straight forward--will the shareprice be adjusted for the split?
REMEMBER GUYS, if even one person thinks this, then dozens more probably do.
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