Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: For the second time in two months, Shanda Interactive's (NAS: SNDA) gaming unit is rallying. Shares of Shanda Games (NAS: GAME) rose as much as 12% after the company announced plans to pay out $285 million in special dividends to domestic and foreign investors.
So what: Holders of class A and B shares will each receive $0.51 per stub held. Holders of American depositary shares will receive $1.02 per ADS held. The payment amounts to a massive 25% yield as of Friday's close.
Now what: Management justified the payout by pointing to $584 million in net available cash and investments and $275 million in operating cash flow generated last year. Do you believe the special dividend is a smart move? Would you buy shares of Shanda Games at current prices? Please weigh in using the comments box below.
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