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Procom Technology, Inc. (OTC: PRCM) announced today that its Board of Directors has declared a dividend payment of $1.13 per share, which will be paid on July 14, 2005, to all shareholders of record as of June 30, 2005
current PPS $1.58
Just aquired by Sun Microsystems
-------------------- Nothing moves a sub like news!!!
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That is correct, this is in payment for selling off Intellectual Property Rights and certain property to Sun Microsystems.
Procom Declares Cash Dividend IRVINE, CA, Jun 15, 2005 (MARKET WIRE via COMTEX) -- Procom Technology, Inc. (OTC: PRCM) announced today that its Board of Directors has declared a dividend payment of $1.13 per share, which will be paid on July 14, 2005, to all shareholders of record as of June 30, 2005.
IRVINE, CA, May 13, 2005 (MARKET WIRE via COMTEX) -- Procom Technology, Inc. (OTC: PRCM) confirmed that its board of directors has unanimously approved the sale to Sun Microsystems, Inc. of all the intellectual property rights and certain related assets used in the operation of Procom's NetFORCE disk-based networked data storage appliances business for approximately $50 million in cash. Under the terms of its definitive agreement with Sun, Procom expects to distribute approximately $20 million of the purchase price to Procom's equity holders promptly following the closing. The transaction is subject to customary closing conditions, including regulatory approvals and the approval of Procom's shareholders. The acquisition is expected to close in June 2005.
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does this usualy drop the price of the stock? i mean why dont people just pick up a ton of these shares collect the divident then sell for a huge profit?
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quote:Originally posted by uhartford686: does this usualy drop the price of the stock? i mean why dont people just pick up a ton of these shares collect the divident then sell for a huge profit?
My thinking on this is that since the company just sold a sizable chunk of its product base to Sun, it may be worth less after the sale. I still believe this is a strong company and the price should hold after the dividend. I am in at $1.65 and figure my risk is $.52 per share. Now if the price were to drop to $1.13 this would be a no-brainer.
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I've been in a couple sizeable divedends and have yet to come out on top. The odds are considerably more in our favor on this one. I have lost before. One was SYNT, I lost a sizeable chunk of money. PRCM will definitely drop after the divedend is released. iplabs gives a good analysis. As long as you can get out before it drops below your share price minus $1.13 you've made money. I have tried to hold long thinking they will come back up but have ended up selling for a loss. There will definitely be a mad rush for the door on this one to maximize profits. How low will it go - I don't think anyone can speculate on that. Will you make a profit - looks to be a good chance. I am also in MTDX looking to double my $5,000 investment. I have also considered playing the ups and downs in this. Something like this should have a couple pretty good swing trades.
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Guys i called Ameritrade and the company has NOT setup a ex dividend date yet, if you all use different brokers , would appreciate if you would call and ask them if PRCM has set up dividend payment yet
-------------------- Sometimes I just want a NORMAL life?
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in general when the stock goes ex-div the price is reduced by the div. market forces then dictate whether it will open higher or lower than the div adjustment.
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Schwab just told me they don't need to be notified by a company when a dividend payment is expected. They said it will automatically be deposited into my account on July 15.
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quote:Originally posted by metal1: in general when the stock goes ex-div the price is reduced by the div. market forces then dictate whether it will open higher or lower than the div adjustment.
EXACTLY! Don't invest over your head here. It's not a "free ride".
-------------------- Do you know what "nemesis" means? A righteous infliction of retribution manifested by an appropriate agent. Personified in this case by an 'orrible 'unt... me. -Brick Top
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