AIR - Air NZ.

**Snow Leopard** · 13-09-2016, 04:11 PM

Originally Posted by nzspeak

...I was shocked a prominent poster on this forum tired to argue that 'dividend stripping' was actually a arbitrage play and not one person in two days pointed out his folly?...

We will try and do better in future

.

So come on quote the post - we all want to know what we missed.

Originally Posted by nzspeak

...AIR NZ was a great buy at $3.20...

So right there is your first folly

.

Best Wishes
Paper Tiger

**Jantar** · 13-09-2016, 04:21 PM

Originally Posted by nzspeak

Who can catch a falling knife? AIR NZ was a great buy at $3.20 .......

Well, maybe not quite a great buy, but certainly a goodbye.

**nzspeak** · 13-09-2016, 04:30 PM

"I have seen a big Australian study with heaps of empirical evidence that showed that in most cases shares recovered the dividend paid within a few weeks" This is what I was talking about... Dividend stripping. Possibly the biggest con since the Wolf of Wall Street gave you a cold call...

**Snow Leopard** · 13-09-2016, 04:42 PM

Oh this quote:

Originally Posted by Roger

I have seen a big Australian study with heaps of empirical evidence that showed that in most cases shares recovered the dividend paid within a few weeks. Obviously with the size of the dividend this time one would expect it will take a bit longer. Thank you for posting previous experience with AIR which supports my contention that all other things being equal the SP is likely to recover the dividend in about twice as long as normal due to its substaintial size.

Originally Posted by nzspeak

...argue that 'dividend stripping' was actually a arbitrage play...

Well in his defence, he never mentioned arbitrage.

And given the definition of arbitrage: the simultaneous buying and selling of...; you are wrong to try and make the association

And if you want a study showing it works then you can find lots and if you want a study showing it doesn't work then you can find lots.

And dividend stripping was Roger's latest thing and I had got bored of it by then anyway.

Best Wishes
Paper Tiger

**Raz** · 13-09-2016, 05:11 PM

Originally Posted by Paper Tiger

Oh this quote:

Well in his defence, he never mentioned arbitrage.

And if you want a study showing it works then you can find lots and if you want a study showing it doesn't work then you can find lots.

Thats the entire point there... you will find a body of research either way...DYOR and make your own play which most people just do and get on with....

**percy** · 13-09-2016, 05:32 PM

Originally Posted by Raz

Thats the entire point there... you will find a body of research either way...DYOR and make your own play which most people just do and get on with....

Agree.
It is all about DYOR and making your own play, and not relying on any anonymous posters on a chat site.

**Harley** · 13-09-2016, 05:36 PM

Originally Posted by nzspeak

Who can catch a falling knife? AIR NZ was a great buy at $3.20 what about now it's under $2? I was shocked a prominent poster on this forum tired to argue that 'dividend stripping' was actually a arbitrage play and not one person in two days pointed out his folly? Please people don't get your finance advice from this forum... you will loose a lot of money....

You sound like you took finance advice from this forum and lost a lot of money. I on the other hand take all my financial advice from shoe shine boys and taxi drivers and I have done very nicely thank you.

**Beagle** · 13-09-2016, 05:55 PM

most cases shares recovered the dividend paid within a few weeks. Obviously with the size of the dividend this time one would expect it will take a bit longer. Thank you for posting previous experience with AIR which supports my contention that all other things being equal the SP is likely to recover the dividend in about twice as long as normal due to its substaintial size.

The hound doesn't care one iota if many are sceptics about dividend stripping...more food for his bowl and he knows its a time honoured and tested method to increase dividend income.

But for those that are interested, hopefully not many, surely the above is pretty easy to understand seeing as its typed in plain English. Lets save the post mortem for 6-8 weeks time eh.

**allfromacell** · 13-09-2016, 08:34 PM

Originally Posted by nzspeak

"I have seen a big Australian study with heaps of empirical evidence that showed that in most cases shares recovered the dividend paid within a few weeks" This is what I was talking about... Dividend stripping. Possibly the biggest con since the Wolf of Wall Street gave you a cold call...

If one bought on the day the dividend was announced and sold today you would be up a tidy 4.5% with the dividend. I'm not saying it works but it wasn't exactly the worst play you could have made regarding the recent dividend.