My wish came true. Some readers told me I was crazy. It is their belief that the preannouncement value of the company will be decreased by the amount of the dividend. Thus, if WCRX was worth $25 before the announcement it will be worth $14.50 once it trades ex-dividend and that I paid $1.10 (the difference between the preannouncement price and my entry point) for nothing. They may be right. A blogger last night compared WCRX's move to the REIT conversion of WY. I don't think that is accurate. The WY dividend and conversion has a large stock component which has a direct dilutive effect. The issue with WCRX, to my thinking, is the correlation (or not) that exists between a company's market value and its balance sheet. I think market value is driven more by a company's income and cash flow than its balance sheet. Clearly servicing the debt will diminish WCRX's income and thus its value, and no doubt I will not receive the total benefit of my bargain ($8.50 - $1.10= $7.40), but I do believe I will come out ahead.
Thanks for the input which is exactly why I explain and publish each of my moves. I have a lot of mistakes ahead of me, although I do not believe this is one. Game on
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