WTMK .12 cent stock giving .07 dividend.

[stockviper]

I just saw this on the SEC website. May be worth throwing a little money at. I did.

---------------------------

Whitemark Homes Declares Cash Dividend on Common Stock

Oviedo, Florida - December 19, 2006 - Whitemark Homes, Inc. (OTCBB: WTMK) announced today that its Board of Directors has declared a cash dividend of $0.07 per share on its Common Stock. The dividend is payable on January 15, 2007 to shareholders of record at the close of business on January 8, 2007.

About Whitemark Homes, Inc.

Whitemark Homes, Inc. (OTCBB: WTMK), headquartered in Oviedo, Florida is a homebuilder in Central Florida.

Certain statements in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

[janos]

sounds pretty good, you were at x.12 now its at x.0.15 and its going up.

To bad I cannot get any, my broker, sharebuilder does not allow purchase of most penny stocks.

[TonyM]

I just saw this on the SEC website. May be worth throwing a little money at. I did.

---------------------------

Whitemark Homes Declares Cash Dividend on Common Stock

Oviedo, Florida - December 19, 2006 - Whitemark Homes, Inc. (OTCBB: WTMK) announced today that its Board of Directors has declared a cash dividend of $0.07 per share on its Common Stock. The dividend is payable on January 15, 2007 to shareholders of record at the close of business on January 8, 2007.

About Whitemark Homes, Inc.

Whitemark Homes, Inc. (OTCBB: WTMK), headquartered in Oviedo, Florida is a homebuilder in Central Florida.

Certain statements in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

I would expect the pps to drop .07 on 1/8

[stockviper]

I would expect the pps to drop .07 on 1/8

Maybe that anticipation has already been built into the share price? Now it's at .15 with double the normal daily volume traded so far today.

[TonyM]

Maybe that anticipation has already been built into the share price? Now it's at .15 with double the normal daily volume traded so far today.

Book value is .118 ps and they are going to give away .07 of that with a levered cash flow of -$556k on a float of 8.99 million. Looks like a way to temporarily prop the price up with the dividend used as a carrot on a stick until every one bails on the 8th. Just my jaded opinion of penny stocks operating in the red with yoy growth of -94%

[White Rabbit]

51% of the shares are held by one of the owners Larry and Patricia White. They own 12,311,977 shares. Since the shares are only selling for $0.16, a nice way to get money out of the company is to declare a dividend of .07 per share, and they pay a dividend tax rate.

The White's get $861,838.39 and still own their shares. "Very Nice Deal Indeed for them". That is my take on this dividend, and I am suprised that the SEC will allow that much of a dividend on this stock.

They also have a lot of stock options left to exercise.

[stockviper]

Book value is .118 ps and they are going to give away .07 of that with a levered cash flow of -$556k on a float of 8.99 million. Looks like a way to temporarily prop the price up with the dividend used as a carrot on a stick until every one bails on the 8th. Just my jaded opinion of penny stocks operating in the red with yoy growth of -94%

Yep the float is 8-9 million out of a total of 21-22 million outstanding.

I only found the form 4 on the SEC website showing 7 million being owned internally. Still leaves 5-7 million somewhere else.

This may be a curious one to watch when the divi drops the PPS .07. May look like a selloff.

[ub3rn00ber]

i got in at .12 if it goes to .2 ima get out, or when i get the dividend ill bail. I think ill short it closer to the 15th

[bahroor]

To bad I cannot get any, my broker, sharebuilder does not allow purchase of most penny stocks.
sharebuilder wont let you buy many stocks discussed here, including many under 5$ or low volume or some IPOs or BB and OTC
not to mention the $15 fee per limit (or market) order


and I am surprised that the SEC will allow that much of a dividend on this stock.
I was thinking the same thing... didn't think the SEC would allow this.. interesting


i got in at .12 if it goes to .2 ima get out, or when i get the dividend ill bail. I think ill short it closer to the 15th
Good plan :roll:
Have you shorted many penny stocks that trade an average of 15K shares/day? :roll:

[stockviper]

i got in at .12 if it goes to .2 ima get out, or when i get the dividend ill bail. I think ill short it closer to the 15th

I tend to agree with you! If nothing else maybe take our original money out and let the rest ride. The company has been in business for a while so they seem stable (not a fly by night).

[stockviper]

May have a little strength here. I looked at the 10Q and the company has made some decent money the first 9 months of the year AND has cut there debt by 1/2.

Company year end is 12/31/06 so I may just hold to see the final numbers when they file with the SEC.

[ub3rn00ber]

Well Thanks for this stock viper, you just paid for the repairs on my atv. Maybe i can get back in for .12 b4 the 15th

[stockviper]

Your welcome! Up to .18.

Hopefully it will keep going. It would be nice to start 2007 with a runner.

[ub3rn00ber]

My order didnt go through at the price i wanted... So for now, im still holding. Im likeing this stock more and more with all this volume.

[stockviper]

Crazy...did I say .18? I meant .20.

And 5 times the average daily volume!

To the moon (LOL).

[TonyM]

Well Thanks for this stock viper, you just paid for the repairs on my atv. Maybe i can get back in for .12 b4 the 15th

What's the deal with the 15th ? the dividend pay date won't affect anything other than being paid if you were a stockholder on the 8th.

[stockviper]

What's the deal with the 15th ? the dividend pay date won't affect anything other than being paid if you were a stockholder on the 8th.

The 15th is the date the share price should drop by .07 to pay out the dividend.

If the share price is .20 and the dividend of .07 hits, the share price will drop to .13. it's that simple (normally).

[TonyM]

The 15th is the date the share price should drop by .07 to pay out the dividend.

If the share price is .20 and the dividend of .07 hits, the share price will drop to .13. it's that simple (normally).

Why wait until the pay date? The money will have been spent on the 8th, if it was that easy I'd just go around buying stocks on the ex-dividend date and sell the next day...1/9 is the day the stock should drop .07

[TonyM]

I was a day off in my previous post; I should have correctly stated that buying the day before the ex-dividend date and selling the day of would be easy money....if the price did not drop by the amount of the dividend on ex-dividend day:

http://www.investopedia.com/articles/02/110802.asp

[cryder17]

so the 8th is when you need to hold the stock through, and essentially the entire weekend until the market opens up on monday the 11th..which is when the price will drop dramatically because that will be the ex-dividend date (11th)

unless what they were saying the in PR is that the end of the 8th is the date of record, and the two days prior are the ex-dividend date (6th), which will be the day the stock drops. either way, buy the stock on monday...and make sure you are ready to sell the damn thing at ANY day during the week if it falls.

[stockviper]

unless what they were saying the in PR is that the end of the 8th is the date of record, and the two days prior are the ex-dividend date (6th), which will be the day the stock drops. either way, buy the stock on monday...and make sure you are ready to sell the damn thing at ANY day during the week if it falls.

There you go! LOL...Since we are getting the dividend we aren't really losing any money.

[TonyM]

There you go! LOL...Since we are getting the dividend we aren't really losing any money.

Sure you are, you're at break even minus comissions when the price drops .07 So using the dividend as a reason to make the trade doesn't add up. If we were talking about a big cap paying a decent dividend that was also likely to recover from the price drop in a resonable amount of time, I could see that strategy...but on a pharmaceutical penny stock? It's a lot closer to Vegas than Wall Street.

[cryder17]

not if your stock price appreciates from the interest of buyers deciding they want the .07 dividend. what if you buy right now at .15, and it ends up at .22 then you would break even on the price but score yourself the dividend

[stockviper]

Is there a difference at tax time whether you make the same amount of money via a dividend or by selling the stock at a profit?

Are there different tax rates?

[TonyM]

not if your stock price appreciates from the interest of buyers deciding they want the .07 dividend. what if you buy right now at .15, and it ends up at .22 then you would break even on the price but score yourself the dividend

A penny stock paying a dividend of 60% of it's book value, with no cash and their business is building homes in Central Florida (highly overpriced buyers market at the moment) Looks pretty risky to hold on ex-dividend day to me, I wouldn't be surprised if the price falls to .04 on 1/5

For some perspective; what if the largest company (xom) offered a dividend of $12? (60% of book value) They would go from flush with cash to being in a big hole...ex-dividend day would be a mad house.

Either way this one goes it will be an interesting test case to watch next week and perhaps serve as a precedent the next time this type of situation comes up.

[stockviper]

Now it's back up to .18 after sitting low all morning.

[ub3rn00ber]

So can i sell it today, or do i have to wait for tommorow?

[TonyM]

So can i sell it today, or do i have to wait for tommorow?

If today is the date of record and you want the dividend, you will need to wait until tomorrow to sell.

[stockviper]

The next week may be slow as people wanting in for the dividend are done buying and many people after buying sometimes realize they want to stay in the stock and not sell since the company may have potential. There could be a selloff but sometimes the dates which the stock needs to be held also change.

I'm in this for a while longer and will take the dividend and then see where we are at before deciding to jump.

[TonyM]

The next week may be slow as people wanting in for the dividend are done buying and many people after buying sometimes realize they want to stay in the stock and not sell since the company may have potential. There could be a selloff but sometimes the dates which the stock needs to be held also change.

I'm in this for a while longer and will take the dividend and then see where we are at before deciding to jump.

Catching a bid with a volume of 2131 shares won't be easy.

[bahroor]

Catching a bid with a volume of 2131 shares won't be easy.

wow, I really don't get it, I guess I'm a volume person.. I don't understand how they play pennies with that kind of volume.
a total of just over $3K (3 thousand dollars total) were traded today.

Anyway, be careful with low volume pennies, hope you guys get out with a profit.. best of luck!

[TonyM]

wow, I really don't get it, I guess I'm a volume person.. I don't understand how they play pennies with that kind of volume.
a total of just over $3K (3 thousand dollars total) were traded today.

Anyway, be careful with low volume pennies, hope you guys get out with a profit.. best of luck!

Don't be so generous;), it comes out to just shy of seven hundred dollars total!
(another 2000 crossed after my original post)

[ub3rn00ber]

Well im going to get my dividen and i made 100$ in capital gain. Thats not bad at all.

[stockviper]

Well im going to get my dividen and i made 100$ in capital gain. Thats not bad at all.

Well done!

Just think if we could do that consistently a few (or more) times a week.

[stockviper]

Something's up. Big volume spike over 100,000 shares so far today. That's more than 5 times the average daily volume. Wonder if the company is selling stock to raise the cash for the dividend?

Last Trade: 0.17
Trade Time: 2:42PM ET
Change: 0.01 (6.25%)
Prev Close: 0.16
Open: 0.15
Bid: 0.15 x 5000
Ask: 0.17 x 5000
1y Target Est: N/A

Day's Range: 0.12 - 0.17
52wk Range: 0.10 - 0.64
Volume: 106,389
Avg Vol (3m): 21,362.9
Market Cap: 3.68M
P/E (ttm): 0.97
EPS (ttm): 0.18
Div & Yield: 0.07 (46.70%)

[TonyM]

I don't understand why the pps did not drop by the dividend amount, but it didn't which means your call to get in at .12 and hold for the divy then sell worked out well. Not my cup of tea, but it worked for you.

[stockviper]

Actually, I don't expect it to drop .07 (the divy amount) until Monday. That's normally how it works! If it's at .20 end of day next Monday, it would open Tuesday at .13.

Perhaps the company just processed a stock transaction to get the cash to pay the dividend and thinking out loud, with the 3 day transaction confirmation period the cash would be available to the company by Friday to pay the dividend outright.

Just a thought. I still think it was strange to see what happened yesterday happen. Gigantic volume. Of course I'm probably wrong and all it was, was a huge investor buying or selling.

[cryder17]

you have to hold to monday im pretty sure. the day of record that they said was actually the ex date, which means you would have to be in today before the close and hold it through the market end on friday to get the dividend.

[ub3rn00ber]

what? thats so lame :-s So no div for me?

Oviedo, Florida - December 19, 2006 - Whitemark Homes, Inc. (OTCBB: WTMK) announced today that its Board of Directors has declared a cash dividend of $0.07 per share on its Common Stock. The dividend is payable on January 15, 2007 to shareholders of record at the close of business on January 8, 2007.

[stockviper]

Boring day today. Looks like we are hanging around .15 per share.