Hi I have not seen much movement on this share since a 53% divi was offered, is there any reason for this, normally the price would rocket. The ex divi date 6 Apr, will the share drop like a stone after that, I see no reason for it to do so, given there has not been a steep rise in value - its just a strange pattern. Any ideas?
The share will drop by the amount of dividend that gets paid out as that cash is no longer in the business. No idea where it will go after that.
So basically the price of the share is about to drop to the level it was in Jan 2015 circa 2500p. It took 2 and a bit years to get from 2500p to 5000p so I guess that you would have to wait that long again for it to regain the value it is paying out in Dividends this time.
Its up to you to determine if you think its going to perform the same way again over the next 2 years.
Thanks Carey, I appreciate the drop being equivalent to the divi, I was wondering why the share price had not increased significantly prior to the ex divi date, perhaps people think the share is overvalued - I will track it and see. The share price does seem to rebound fast (weeks), however this is with divis that are significantly lower than the 53% divi, so I am unsure if this is a fair comparison
I presume that the divi has simply been expected for some extended time, the news hasn't just come out so to some degree it has been built into the share price already. As an investment trust it is simply paying out cash that it holds as part of its NAV rather than being an indication of rising ongoing profitability - so the NAV valuation already includes it's value. There is no particular reason to think that it will make the same money over the next couple of years.
Would appreciate if someone unravels the mystery of some of the share dealings of Electra since it went ex-dividend. For example, I saw some share purchases at 5,139.00p but the quoted price is only around 2550p . I don't see that spread in the quoted prices at all. So what's going on under the hood?
Those 2 look like delayed trades, ie they were before the ex-dividend, buys are around 2557 today.
