Monday, July 26, 2010

Closed Banco Bradesco

I closed Banco Bradesco (BBD) position today.. Reasons for that decision were outlined here. Right now is a good moment to sell, because, for the second time this year, BBD issued 10% stock dividend, which is equal to 11/10 stock split. Which means that stock got diluted, but the fact is not reflected in price yet, probably because this information is only available through your broker if you own the stock. At least I haven't found it on usual sites, like Yahoo! Finance. You can see it on Google Finance chart, but it takes some digging to understand. Of course, dilution will make its way into price eventually, so it's better to sell now.

Seeking Alpha Certified

No comments: