"If they are going to jump onboard just for the dividend they are going to pay a huge price all right. The only thing holding up the price is the dividend, when that is gone so is 70c-80c from the share price."
does not allow for any further run up in share price to the first ex-dividend date (next Monday) or the profits made to date for many of us (at $3.07 close today) . I posted earlier that my buy price was $2.92.
From my experience trading almost exclusively in stocks over the ex-dividend period for the last 2 years a stock a stock with a 40c fully franked dividend (the first dividend in this case) will often fall in price about midway between the dividend and dividend + franking credit (ie halfway between 40c and 57.14c). That makes for a fall of about 48.57c.
A 70c-80c fall would be quite unlikely particularly with further cum dividend period ahead up to the second ex dividend date of 4 September (for the 6c fully franked dividend)
Ajax
WYL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
