Spg

Discussion in 'Stocks' started by lolatency, Mar 17, 2009.

  1. Off of Yahoo -- On the 18th, this gets completed:

    * Holders of 15.2 million shares elected to receive the dividend all in shares.
    * Holders of 193.6 million shares elected to receive the dividend all in cash and will receive $0.0971 per share in cash (10.8%) and $0.8029 per share in stock (89.2%).
    * Holders of 22.5 million shares made no election and will receive $0.09 per share in cash (10%) and $0.81 per share in stock (90%).
    * The Company will pay fractional shares in cash.

    What exactly are the implications? I'm trying to understand the implications/costs of this dividend paid out in stock.

    Today and Friday, the stock stopped moving at multiples of the index and it got punished today by 10%. I'm short (still), and wondering what will happen to all those shares. They're diluting the value of shares to conserve on cash, but now these dividend recipients can dump their shares on the open market and push the price down. However, this dividend-in-stock announcement happened at the end of January.

    Can someone who understands corporate actions on a deeper level convert the above to price-action results?