Dec. 12 at 5:15 AM
$ACP There seems to be a theory that goes:
1. If a stock has a certain market value and a specific dividend amount/percentage,
2. And if they've paid this dividend over a period of at least a few months, anyway,
3. And if the company reduces their dividend by a given percentage,
4. The stock price will decline till it reaches a price commensurate with the previous dividend percentage.
Tuesday's close was
$6.45, and it had a 0.10 cent/month dividend, which was an annualized divi of 18.6%.
According to this theory, ACP could go to
$4.99 to attain the previous 18.6% dividend rate, given the revised 0.0775/month or 0.93/year divi. It might not stay there, but it might get there for a minute or two, or somewhere close.
Look into
$PSEC and what's happened over there. This is similar.
