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Ann: Dividend/Distribution - BLD, page-23

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AnneSid

2,753 Posts.

183

12/04/24

21:26

Post #: 73323866
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Originally posted by KingSimba: ↑

SVW ended the day at $40.07

0.1116 of that is $4.47

Add $1.70 and you get $6.17

BLD ended today at $6.12

Dividend doesn't change anything as cash component and BLD share price (if you bought after) will fall by $0.26 on the ex-dividend date

So yes you could say because $6.12 < $6.17 BLD is currently slightly undervalued. But this is contingent on SVW's underlying share price which was fairly volatile throughout the day, and changes in SVW won't immediately be reflected in BLD (to your benefit or detriment). Also note that BLD was trading around $6.16 for a while before close, so the market is pretty efficient most of the time.

In the age of high frequency trading, it's nearly impossible to make any profits from arbitrage once you take out transaction costs.

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Apologies, as I thought the 0.26 divi was part of the takeover offer. So they are trading close enough. The next question would then be what if they sell off more than the 0.26 cent divi which normally happens. All the same thanks for your input. Was a bit puzzled at first.

BLD Price at posting: $6.12 Sentiment: None Disclosure: Held
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0 Great analysis

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