ex divi, page-17

Geepeen wrote:"Sometimes TLS does weird things....in August 2012 the SP fell about 35c BEFORE the ex-div date????"


TLS stock is also held by many overseas entities; whom are not entitled to the dividend imputation credit. Therefore I think the price gets pushed up before the ex-dividend date by those playing the dividend game and by the lack of supply. This gives the non-entitled entities an opportunity to sell into the higher price with the expectation that the price will be at least 20cents lower ex-dividend, so they can to buy back in.
But, what I think happens is that too many share are placed for sale in a short space of time; which then causes stop-loss orders to be triggered; thus, in turn, causing the price too fall even further than the grossed up dividend amount.

This has been happening for at least the last four dividend payments.

The trick is to try and catch this wave at exactly the right moment so you can sell at the higher price; then buy at the low, before the ex-dividend date, to get a two fold payout.
Of course, there is no guarantee that it will happen this time, but you need to be very quick.

Cheers
--Dan