LONG strangeness

Microcode Studio 3.0.0.5 and PBP 2.06L

I'm doing something simple with LONGs

Variable1 = $0016
Variable2 = Variable1/16 * 10

Variable2 should contain $000A but instead contains $C00A

Any guesses why?
It's almost like when you right shift a long, the left fills with 1's instead of 0's !!?!