Can you shed some light on these "scheduled distributions?"
So my Mom forwarded me a message from what looks like HSI Baltimore talking about great advantages of "scheduled distributions."
Sounds like another "too good to be true" story so I'm just looking for some info.
Here's an excerpt from the message:
On June 15th, 2009, Dayton Superior Corp.
is required by federal law to pay investors a 97% "Scheduled Distribution"...
Right now, more than 100 companies are issuing abnormally large, 1-day payouts to their investors.
Why would they do that?
Well... businesses need money to grow. But banks aren't lending to anyone right now. So some companies are willing to make ridiculously large, one-time "Scheduled Distributions" to entice ordinary Americans to invest.
And while most companies are cutting their dividends – or doing away with them entirely – these "Scheduled Distributions" are getting bigger and bigger.
Here's just a small sampling of what you could've been paid in 2008:
• 98% on September 1st: Atherogenics (pharmaceuticals)
• 31% on October 6th: Tribune Co. (newspapers)
• 66% on February 15th: Sea Containers (shipping)
• 74% on July 1st: Interep National Radio Sales (media)
What's amazing is that even though many stocks are at their lowest levels in decades, some investors are making a killing from "Scheduled Distributions"...
Robert Mann of Buffalo, NY, put $15,000 into the power supplier, Cherokee Int. Corp., in September 2008. Just one month later he pocketed $6,000 – a 40% "Scheduled Distribution" – plus the $15,000 he originally invested.
Ray Ludman of Newport Beach, CA, invested $10,000 in the grocery chain, Winn Dixie, in November 2006. Just 17 months later on April 1, 2008, he got his $10,000 stake back... PLUS, he collected a "Scheduled Distribution" of 71% -- putting an extra $7,100 in his bank account.
And the calendar for 2009 is looking even better...