Educational Development Corporation (EDUC)

[wadirum1]

My guess is that they do in fact suspend the dividend. The company needs capital to grow in order to keep up with the demand for their products.

And my guess about why he started doing conference calls is that he wants to get the stock price up toward $20 so that he can issue those million shares he wants to issue.

He holds 800,000 shares, so I believe him when he says he isn't going to issue shares down at these prices. But I also believe that he wants to grow the business. He cut an amazing deal on getting the new warehouse (with a tenant paying the mortgage). But he was quite clear in the CC about needing more capital to really grow as fast as possible.