Well, not quite as simple as that. The shares are cum a 0.7c unfranked dividend.
When the shares go ex dividend in a week's time you will pay tax on 0.7c of your 4.0c share value and the theoretical ex price of the shares will be 3.3c (i.e. when ex dividend the shares will likely trade initially at 3.3c).
Your 0.3c could be eaten up by income tax if you are on a 40% tax rate as the dividend is unfranked.
But over time if your shares trade back up to 4.0c you will have your 0.3c gain plus would have received a 0.7c unfranked dividend..
BCN Price at posting:
4.0¢ Sentiment: None Disclosure: Held
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