I've initiated a small position in Noel Gifts International to test out the strategy I have previously discussed on my post on Design Studio (view article here). Since the counter is rather illiquid, I have only managed to purchase 40,000 shares at a price of $0.295.
The idea of using this strategy is to test out the psychological importance of paying out dividends out of earnings that is in excess of 10% yield in a single year. While this is not the most prudent way for the management to do so, it allows a good opportunity for investors to get in early in anticipation for the announce-to-be special dividends later in the year, where it will announce a strong signal that I think will send the price to rocket upwards, similar to what it recently does to Design Studio.
My time frame for holding this counter will ...
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