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Deal timing, dividend rates - davidhmtk - 12-20-2012
At the informal talks following the AGM, Phil M told me that his preferred method of punishing the short sellers who have been abusing the co. for years was to pay a substantial dividend from the cash from a selldown. If the rest of the BOD feels the same, the dividend would have to be declared before year-end and payable to shareholders of record before year-end. This saves any substantial private shareholder more than 20% than if declared a week or 2 later. For example, Phil's 5,000,000 shares with a $40/share dividend, would save $40,000,000. What is the likely outcome of the BOD meeting tomorrow or Friday (per JFT)?
RE: Deal timing, dividend rates - Palm - 12-20-2012
Since you are saying that it would only be declared and payable (not actually paid), why is it necessary that this take place before YE? Shorts get burned with a dividend no matter when the dividend is declared/payable/paid. Dividends can be paid at any time.
RE: Deal timing, dividend rates - johnwgrant - 12-20-2012
David is trying to have the dividends taxed at the lower rate (ie, Bush tax cuts still in force) before 1/1/13 - when they increase assuming no deal by our politicians....
RE: Deal timing, dividend rates - davidhmtk - 12-20-2012
Palm - you are correct, the dividend would have to be paid this year and so would have to be declared this week. ( My bad - I've done a lot of corporate accrual accounting). We will know by Friday.
'Palm' pid='15070' datel Wrote:Since you are saying that it would only be declared and payable (not actually paid), why is it necessary that this take place before YE? Shorts get burned with a dividend no matter when the dividend is declared/payable/paid. Dividends can be paid at any time.
RE: Deal timing, dividend rates - Palm - 12-20-2012
(12-20-2012, 07:10 AM)johnwgrant Wrote: David is trying to have the dividends taxed at the lower rate (ie, Bush tax cuts still in force) before 1/1/13 - when they increase assuming no deal by our politicians....
Understand, but that doesn't happen unless they are actually paid; declared and date of record don't get that done. Would take a miracle to get them paid by YE
RE: Deal timing, dividend rates - ltinvest - 12-20-2012
Nice thought but ain't gonna happen.
RE: Deal timing, dividend rates - bertl05 - 12-20-2012
I agree, aint going to happen. But ultimately 50% of shorts will cover on SD announcement or before, But some will always be with us. If you can find me any exploration company in a remote location that doesnt have a decent short position at all times prior to production and revenues,,,i'd like to hear about it. Its also about making money, shorts have done well over the last few years on massive PPS drops, they will continue to play games. Look at a stock like DNDN...people thought that shorts would abondon it after it went from 5 to 30. They simplky reloaded. If you cant live with shorts ( which is now an intrinsic part of the market thanks to WS and SEC, then I suggest you ajust your expectaions). But IOC can go much higher even with a consistant 4-6 million short.