|To: HIA who wrote (4557)||2/10/2004 3:27:49 PM|
|From: Ira Player||Read Replies (1) | Respond to of 5531|
|I believe the February 5 date is inaccurate even for a "normal" dividend.|
The nasdaq site states:
How is an ex-dividend date set?
For cash dividends, stock dividends/splits, or distributions less than 25%, the ex-date is two business days before the record date. For 25% or greater stock dividends/splits or distributions, the ex-date is the first business day after the payable date.
What is a record date for a dividend?
The record date is the day on which the company's transfer agent compiles a list of those persons having shares registered in their names.
Therefore, the stock would have had to be purchased on the 3rd to be recorded on the 5th and receive the dividend, if it were less than 25%. However, this dividend is 57% and therefore the ex-dividend date is March 11. That is why it is still trading near $8 today, the 10th, 5 days after the record date.
As to "Since the price of the stock did not adjust for the dividend, the dividend appears to be a return-of-capital."
Why wouldn't the stock price adjust for any distribution?
The day after any distribution, the stock should trade for that much less, since the previous days owner got value the new owner will not.
Where did you see "return of capital" in any news release? I cannot find anything with that wording.