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Strategies & Market Trends : Action & Options- Taxikid plays -- Ignore unavailable to you. Want to Upgrade?

To: Druss who wrote (3626)	2/2/1998 5:22:00 PM
From: Allan F	Read Replies (3) \| Respond to of 4339

Druss, The way I see it play out the stock will be flat until the day it goes ex-div, at which time the price open exactly equal to the old price minus the amount of the dividend. If you are short at the close prior the the ex-div, you owe the guy you borrowed the shares from a dividend. Clearly, (as I am sure you already know) the only way to make money is betting the price will drop greater than the dividend amount. After reading the 10K, I don't expect the stock to drop much more than the dividend payouts. The play here, (as I see) is it wether the price plus all future dividends is worth more than the $2-3 it is expected to fetch at the dissolution. Not my area of expertise. I think I understand where you were coming from on it, but given the large holding by the parent company (84%!), I just don't think anyone is going to be taken by surprise. -Allan BTW, are you around right now? I sent you an email.