AppSwarm Inc (SWRM)

[gr8lake]

Does anyone really think that if they buy tomorrow, at full pre split price, that their shares will just drop to 1/5TH of their value on 11/2/09, and they will get nothing to show for it? If that was really the case, you could expect a huge PPS drop tomorrow through Friday. That is not how it works with a forward split. Even though the company is calling this a dividend, there is actually no difference between a forward split, and this kind of stock dividend. A true stock dividend is when a company spins off a subsidiary, and creates a second public company. In that case you must own the stock 3 days before the record date, or before the Ex Dividend date, in order to get the shares of the new company.
With a forward split, the Ex Split date is the day the new shares are distributed, and the stock trades at the lower price. That date is 11/2/09, not today. Today is only the last day to get certificated shares, not broker owned shares. If you sell tomorrow, you will not participate in the 5 for 1 split. The person who buys those shares will get your 4 additional shares, not you.
You can buy all the way up until 10/30/09, and still take advantage of the split, unless you are buying certificated shares from the T/A.
These rules were made to protect investors. Can you imagine what would happen if what you all are saying was true. Anyone who buys from 10/27/09 to 10/30/09 would pay pre split price, and then have their SNWT portfolio reduced by 4/5THs on 11/2/09, with no shares added to your account. It does not work that way.
Call your brokers, and do some research.
SpongeBath