http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_C/threadview?m=tm&bn=57197&tid=1336&mid=1337&tof=9&rt=2&frt=2&off=1
“You should not expect the special dividend announcement to affect the price of the stock at all (until such time as it is actually paid. This dividend is NOT paid from ongoing earnings. It is paid from money raised from the initial stockholders (at a higher price) at the IPO.
$1.50/share is being transfered from the company's bank account to yours. So you will be $1.50 to the good, and your stock investment in NPD will lose $1.50 per share after the dividend is paid. Big deal, you are just forced to pay taxes on your own money.
It is not like NPD will earn back that $1.50 in a year, or even two. So, as far as valuation of the investment is concerned, the dividend announcement is pretty irrelevant, IMO. It does show you that they cannot use, and cannot figure out what to do with all the cash that they raised at the IPO.”
