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To: still learning who wrote (1145)	2/23/1998 1:06:00 PM
From: John Arnopp	Read Replies (1) \| Respond to of 4467

David, I agree, it has to (should) drop by something, since from one day to the next you are missing something if you buy ex-rights. But, assuming the offerings are evenly spaced, the forward 1-year dividend yield is always the same! Perhaps it's more of a "disocunting" factor, given that you now have to wait almost one year to make up the missed offering. It would be a lot of work, but I'd like to get all the public companies' price histories, and go back and look at the offerings and see how NAV and "dividend yield" changed around the offerings and what the stock price did. In reality, since they hadn't announced that they were going to do a certain amount of offerings per year for the earlier offerings (only late in 1996), you probably wouldn't be able to use my dividend analysis for the older offerings, since they couldn't be considered "ordinary" dividends. Just some more thoughts, --John

To: still learning who wrote (1145)	2/23/1998 4:28:00 PM
From: John Arnopp	Read Replies (1) \| Respond to of 4467

OK, this may be off the wall, but how about this explanation/model for the ex-rights price drop (which "still learning" has told us has been about $1 after each offering): A buyer "loses" 1/3 of the yearly "dividend" until the next payout (assuming equally spaced offerings, the next payout is in 1/3 of a year). Therefore, if the dividend's value is $10, 1/3 of this 3.33, which you have lost for 1/3 of the year. Therefore, discounting this 1.11 at a conservative rate like prime, you come up with (1.11/1.08), or a lost present value of $1.03. No matter what the share price. (Tell me if I'm nuts.) --John