Apr. 9 at 2:30 PM
$VISN What I expect will happen this month:
Dividend chasers will push the share price to
$20.00-
$20.50 per share before April 17. The share price will drop to <
$10.00 per share on April 17 to reflect the new enterprise value of the business. The dividend will mostly consist of Return of Capital, which will reduce the cost basis for shareholders (not taxable until shares are sold) and the remainder of the dividend will be classified as a capital gain. So, that's favorable for anyone in a higher tax bracket concerned about getting hit with a massive tax bill at regular income tax rates on the dividend payment. For some, this will be a non-event other than the cash flow windfall, i.e., you (1) have enough capital loss carryforwards to offset the portion of the dividend that will be classified as a capital gain, and (2) have no plans to sell the stock anytime soon which means the RoC portion of the dividend (which will be the vast majority) won't be taxable for a long time.
