MARCUS MCS $7.00 dividend

[stockviper]

Here's another quick pop like AMTD and FIZ. Marcus (MCS) will be issuing a $7.00 per share special dividend to shareholders of record by Feb 3. Dividend will be paid Feb. 24. Marcus looks to be a solid company with good financials. 30% dividend not bad.

[Bullish Homing Pigeon]

Nice beta of 0.60 hmmm interesting! Thanks for pointing this out I have been looking for something like this.

[stockviper]

I bought 100 so far. want another 100 next week.

[Bullish Homing Pigeon]

I only have $2,500 for my long term plays at this time. So I sold 50 shares of MOT and got 50 shares of MCS. Now I have 50 of each for long term. If it pays better than a CD im doing great. Also, I have some mad money to play the risky stuff for short term plays.

[pmb1010]

Can someone please explain to me how they made any money on the AMTD dividend?

Unless you got in before $24/share, with the dividend payout it dropped to $20.

Those in at $26 (a few days before the dividend) are still behind $2/share.

[Luc1Grunt]

Another question. The $7 div was announced on 17 Jan and the stock spiked up $6. Volume is very low. Industry is volatile to say the least. News release says you must hold the stock through ex-d (27 Feb). My question is risk.......at $700 profit on 100 shares PLUS the .75 per share normal div (ex-d is 24 Feb), you're well over 30% gain in just over 1 month. The stock has not jumped the $7 yet. With that, if you set a stop for $5 immediately following pay date, you are still well into the black. This seems like such a no brainer, the risk has to be with company news between now and the pay date and as with all stocks, bad news, bankruptcy etc. will kill the dividend and the stock.

Any comments or experience on this????

[stockviper]

PMB...My average cost for AMTD was 25.60 for 300 shares. ($1,800 dividend). The price is now $20.00. As of now 25.60 - 20.00 = 5.60 x 300 for a $1,680 paper loss. IF I sold now I'd still be up $120.00. I feel the stock will go higher though so I'm holding. Yes it could go down and I can end up with a loss.

I feel the market conditions which caused the price of the stock to go up are the same now as they were before the dividend. The company is strong and I feel the price will recover. I could be wrong. But that's the risk we all take on every investment.

Also, I believe there is a different tax bracket for capital gains on stock vs. gains from stock dividends. I have not researched that however. I don't care about the taxes. If I make money I don't worry about paying taxes.

[stockviper]

LUC..I usually try to wait until the last few days before the dividend date so I won't get caught up in the initial frenzy o feveryone running up the stock price and then having it come back down. Sometimes I miss an opportunity when the prices don't come down but it's better then getting whipsawed. Take into condsideration the company itself, financials, and other technicals along with your own risk tolerance.

Cramer found AXR, Whole Foods & AMTD, I found FIZ, GWGC, and MCS. The news is out there you just have to find them. Right now these "extra" dividends seem to be popular.

Any extra cash I gather from the dividends is great and if I sell at a loss frm time to time it offsets my gains.

[Bullish Homing Pigeon]

I don't plan on selling for a year or maybe even fifteen years for my long term plays unless I can catch a good spike or something hell i only have 50 shares anyway. should beat the s&p but we shall see. My goal is to beat 5% but 25% would be better. Still got loads of short term crap to worry about. Got any better stock for this type play?

[Luc1Grunt]

Viper, I agree on the timing and have it on the watch list. Just wondering about the volatility of the industry and the company. No red flags on paper that I have seen. Nice job and thanks for the tip. A cool 30% in a month is PHAT!!

[Luc1Grunt]

Speaking of dividends......NFI. I've held this for a while and my paper gains at this point are impressive. I pile on more with the dips. Check out the dividend rate of 5.40 annually. I'll bail if it drops into the mid to low 20's, but I don't see that on the horizon.

Marketwatch has an article today on dividend computations and strategies for impressive gains. Look up BUD, then news and you should see it. The article is under Motley Fool, but I don't get to that site often. The link will take you there. Happy hunting.

[stockviper]

Bullish, want short term...check out GWGO. They have a 25% stock dividend coming up but beside that...the share price is between .0004 and .0005. check out the yahoo chart.

Depending on your broker and account type you may need to handle your account differently to avoid the free ride crap. I own 1 million shares (easy now, that's only $500 worth) to handle the first in first out rule but you should be able to buy at .0004 and sell at .0005. If you do this every day with 250,000 shares you make about $25.00 a pop after commisions. Sometimes it's hard to get a buy or sale though on the larger quantities.

Good Luck

[Bullish Homing Pigeon]

beta of 0.60 should mean low volatility. Last summer was not that great for the stock however.

[bsk1999]

Viper ...

Actually, if buy and sell 250,000 at .0004 and .0005 respectively, you will only make $11 per trade.

You will only gross $25 profit per trade, and at $7 commission both the buy and sale ($14) that's $11 profit. If you include the 1% add on commission that Scottrade will tax you on, then your profit is only $8.75.

Now, there were 31 trades for this stock on Friday, with an average size of 600,000 shares. If we use this as our average trade, we can net $40.60 per trade ($60 gross - $14 commissioned - $5.40 1% add on).

Then we note that our downside, if we can't sell at $.0005, and can only get out at $.0004 is -$16.25 at 250,000 shares and -$19.40 at 600,000 shares.

What do we notice now ... IF we want to trade these MICROS, try to trade as many as possible, which should usually be around the average trade for the last few days.

Hope this helps.

[Bullish Homing Pigeon]

Well Monday is the big day we get the dividend and get to see how far the price of the stock drops too. I'm thinking it will be about $17-$18 per share come monday. I am going to try to hold it till it goes up. Any thoughts? Who else is in this thing?

[stockviper]

I was stopped out of Marcus (MCS) Tuesday at $23.00. But that's OK with me. I still get the dividend. The price should drop the $7.00 Monday but in the long run I think this is a pretty good company and will get back to the pre-dividend amounts.

There are a lot of opportunities out there and IMO there will be some good chances at $$$ for the next 5-10 years due to energy prices and 3rd world growth.

[Bullish Homing Pigeon]

Heres what it says at the MCS web site..
"If you sell shares of MCS common stock in the market before the February 27th ex-dividend date (whether or not you owned the shares on the record date) you will not be intitled to the special dividend with respect to those shares."

[stockviper]

Good Catch BHP...

Looks like you are correct. I blew that one.

Maybe I'll pick it up again after the dividend drops the price to 18 +/- and those other folks not realizing what is happening has there automated stops kick in (IMO) and drop the price down further.

[Bullish Homing Pigeon]

Why couldn't we short it since we know it will drop Monday? Hmm thats to easy has to be a catch somewhere.

[stockviper]

If I remember correctly you could BUT you would then be responsible for paying the dividend to whoever owns the shares you shorted.

[Bullish Homing Pigeon]

I knew there was a catch haha.