Quote from: SimonL on July 31, 2013, 02:52:19 PM

Quote from: Voodah on July 31, 2013, 02:35:07 PM

Quote from: lano1106 on July 31, 2013, 01:20:41 PM

Quote from: murmur on July 31, 2013, 11:32:12 AM

have I missed something crucial or why is the AM price imploding on dividend day?

Another explanation USD/BTC rate. AM share price in USD remains relatively stable.

This is it guys.

When BTC dropped to 68, AM acted as hedge and went all the way up to +5.

We are now recovering on the BTC/USD side and AM is correcting back down.

It's tempting to think that, but the dividend profits remain the same, additionally the expenses for Asicminer reduces since they don't need to convert as many to cover costs, thus there would likely be a marginal increase in dividends, thus justifying the price of the shares remaining the same (or perhaps even higher since AM is suddenly spitting out higher divs). Asicminer's competitiveness to reap massive profits haven't changed, and even though there are competitors on the horizon, they are still left to prove themselves. BTC holders really shouldn't be losing value on the shares in BTC, only those that aren't in the Bitcoin economy should be at a disadvantage.

Divs are a whole other thing, composed of several streams, some of them highly variable, like sales.

BTC holders (or anyone) haven't really lost any value. Before the move up that hedged the btc wave down to 68, AM was at 3.5. This move artificially pumped the AM price up all the way 5~ and it is now 4.2.

After all is said and done, AM gained ~15% by acting as hedge. The gains are probably accounted for by new people who realized during the down wave that AM was the best hedging asset