Posted On: 04/09/2014 10:21:25 AM
Post# of 4274
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Re: gramps1942 #420
Actually Gramps, I wished they would never have voted in a 10% stock dividend. I don't mean to offend anyone, but a stock dividend is not anything of value. It simply dilutes our future valuations by 10%. Not meaning to be a downer here, but allow me to give an example. Let's say you have a company that has 100 million shares on the OS. Let's say that company owns a property worth $100,000,000. That would give you a valuation of 1.00/share. Now that company decides to issue a 10% stock dividend, thereby increasing the OS to 110 million shares. The property is still worth $100,000,000. But the valuation has now been reduced to .909 per share because the $100 mil asset is now divided by 110 mil shares.
I don't like stock dividends, I never have, and you can see the short term results of the share price. That said, I'll be adding more over the next few hours into this pullback.
I don't like stock dividends, I never have, and you can see the short term results of the share price. That said, I'll be adding more over the next few hours into this pullback.
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