Sharad Posted February 23, 2018 Share Posted February 23, 2018 Please note that this is a short term opportunity, based on a short-term catalyst that was triggered earlier this week I'm shorting a split share, Dividend 15 Split Corp II, ticker symbol DF on the TSX. The premise is simple. Currently the premium to NAV is about 50-55%. While split shares always have some premium to NAV, the price usually collapses when the dividend is halted. This is exactly what happened this month, as NAV fell below $5 for the class A share, DF. For some reason, the stock remains up, but past history shows, the premium quickly closes towards NAV (i.e. the stock drops precipitously when investors realize no dividend is coming). This should happen at some point in the next week or two. If you take a look at LFE on the TSX, its NAV is about the same as DF, and yet its stock trades a full $2 below DF. It's unbelievable. I'd like anyone's comments on this one. I have seen that in the past split shares are taken behind the woodshed whenever they halt dividends. Why shouldn't that be the case this time? Link to comment Share on other sites More sharing options...
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