Update on Nicholas Financial

I want everyone to be clear on what just happened with Nicholas Financial ($NICK).

Tuesday was the last day one could buy the shares to qualify for the big dividend.

As such, the stock lost $2 per share in value on Wednesday. Shareholders, of course, aren’t losing anything since that $2 will be paid out to them. On Wednesday’s trading, NICK lost $2.29 per share, so that was $2 due to the dividend and 29 cents as a part of regular trading.

When the dividend was announced, NICK was at $13.35 so the stock has only lost 90 cents per share. In effect, the stock gains $1.10 per share before we adjust for the $2 dividend.

What I’m trying to say is that we’ve made a nice profit on this whole special dividend plan.

Posted by on December 20th, 2012 at 12:24 am

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