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Re: - The decline in per share earnings? Why ?The distributions per share were very much more 10 years ago - maxing out at $3 per share adjusted for the 2:1 reverse split in 2001. The latter was an interesting event. Looking at the historical pps graph, it shows CMO was trading at about $33 on July 1 2001, dropping precipitously to $20 on July 2. However, this is not what happened. The graph has been adjusted for the 2:1 reverse split that occurred on July 2, 2001, simultaneously with going ex-div on a massive special dividend of $7.30, which returned capital to shareholders. Re-engineering what happened around that time: -CMO was trading at $16.5 on july 1st, 2001, pre-split -A $7.30 dividend was paid, so the ex-div drop takes it to &9.20 -The 1-for-2 reverse plsit then occured on July 2, which should double the pps from $9.20 to $18.40. -In fact however, the share traded around $20 on July 2, 2001, which was a gain of $1.60 relative to the previous day. It just shows what a misleading impression historical graphs can give you if you don't check the facts. Before unearthing the above scenario, I was convinced the precipitous drop must have been caused by a massive and sudden short attack. |
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