timpb dividend payment, page-15

It will be interesting to see what happens tomorrow with the share price of TIM and TIMPB. Its nearly a 20% ?)return (including franking or is it more counting franking - 22%?) for holding a couple of weeks from tomorrow if you can still get in at 40 cents. It is still a good return even if the price gets bid up to over 70 cents. I think by memory there were about 65k shares at 45 cents or less left after closing and then nothing until over $1.00.

But the real value of the shares is the underlying TIM. If they are only worth 11 cents, then I can't see anyone bidding TIMPB up over 60 cents or so just to collect the dividend. I wonder if we will see a decoupling of TIM and TIMPB with TIMPB being worth more than 4x TIM - the opposite of what we have seen the last few months.

If you take the paying of the dividend as a sign of general health of the company, you might pay more than 4X TIM as you would be expecting 6.75 cents at the end of March and again in September so you might push TIMPB to 60 cents with TIM at 11.5. Otherwise its probably best to go with TIM.

Do you see any reason why TIM would go up on this news? Any reason to close your shorts? My intuition says maybe only a little and that I think will keep TIMPB more subdued than it could be, but I don't really have the experience in these things that one would rely on.

In any case, I'm glad they are paying the dividend - and that I bought more yesterday.