Sitting at nice low levels,i am thinking of purchasing sum with a 1 month/20% view,can any1 see this one hitting 77/78 in the next month..Any view,just got out of OML..dont wanna even look at the financial stocks..Any other shares that could gv me a 20% return??
Lol..Cat how u been doing?? long time no hear..what share should i look at mate??Im a lil scared of the others as most of the big guns have rallied 20% or more..MTN,AGL..Any bad news and they could be 20% down in no time..ACL is looking attractive,no??lol
So if I buy TKG on the 4 of May(LDT in respect of the unbundling),hold it until the 8th of May(LDT to trade in respect of the special dividend),sell it on the 9th May before the 11th May(Ex div),then I should score +- 20% no??
On that note....why is it that, if the market was pretty stable and not so volatile, that someone could purchase 1 mil OML shares on LDT, sell them on Record date (am assuming same price) and then still get xxx in Divs. That seems too simple hey...but this is possible is it not ?
The expected dividend is priced in before the actual dividend is declared. Then on the day that the dividend is declared, the actual dividend is immediately priced in, if the expectation was incorrect. The dividend stays priced in until LTD and then when the market opens the next morning the price adjusts immediately to ex dividend price. The only way you could possibly benefit exceptionally is to correctly peg the dividend before declaration when the rest of the market has it wrong and buy at a low price before dividend declaration to see it shoot up on the day of the declaration.