Soup Restaurant's share price has been bumped up by the special dividend declared recently. This is good news for shareholders, whether they were hoping for capital appreciation or to collect more dividend.
However, once the counter goes XD on 7th May, we could see share price weakening significantly if Mr. Market wakes up to the fact that this stock has become relatively expensive with EPS being much lower without contributions from Dian Xiao Er.
So, bearing in mind my motivation for being vested in Soup Restaurant in the first instance, divesting my stake now makes sense as the difference between the sell price and my buy price is more than the dividend of 1.15c to be paid out. Add the two rounds of dividends I received before, the ROI over the last one year looks pretty decent.
I now retain a very small long position which is, in essence, free of cost. This means that I get to keep my shareholder's card and I will still get ......