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Seriously? Tell us how many shares are available currently to issue. Let me help you.
700,000,000 - 143,824,700 = 556,175,300
Do you notice how my number is the same as the one you mention?
Now explain to us how they'll have a ton of common available for issuance?
There is no change to what is available to issue. They have always had that same amount available.
Now try to explain how your post was not false and misleading.
You can't prove that anything ever said here was false or misleading. - Janice Shell
How about this one?
Yep. If they're allowed to do this, they'll have a ton of common available for issuance. - Janice Shell
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61877610
EIGH has had 700 million shares authorized since inception. The new structure gives them no additional shares to issue. In four years EIGH has issued less than 6.5% of the additional shares they are authorized to issue.
Your statement was both false and misleading.
Buying back the float would raise the PPS not make it go down like you see going on here.
I think that may be a common assumption, but one should be aware of all of the conditions regarding repurchases.
Rule 10b-18
...The price condition is intended to prevent the issuer from leading the market for the security through its repurchases by limiting the issuer to bidding for or buying its security at a price that is no higher than the highest independent published bid or last independent transaction price. As such, the price condition uses an independent reference price that has not been set or influenced by the issuer but, instead, is based on independent market forces.
http://www.sec.gov/rules/final/33-8335.htm
Well the article was not really written for us, so I guess we should feel pretty good about the slightest comprehension of it.
The Suggested Routing function is meant to aid the reader of this document. Each NASD member firm should consider the appropriate distribution in the context of its own organizational structure.
• Legal & Compliance
• Registered Representatives
• Senior Management
• Trading & Market Making
http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p003997.pdf
Thank you as well. Hopefully not everyone was bored by our posts.
So in the case of a dividend that is less than 25% of the pps the record date establishes precisely who is entitled to the dividend and in the case of a dividend in excess of 25% the record date provides precisely the same list of holders which is then corrected by purchases made subsequent to the record date and prior to or on the payment date via the attachment of the due bill. Correct?
Correct.
Would you not then agree that including the following Endnote following the FINRA article, which defines the record date in a manner inconsistent with its own example, might have been unwise and misleading?
Well I think they did a pretty good job of explaining the situation with dividends of 25% or greater. The Due Bill is not even mentioned in that article, so we did have to do some additional research on our own to have a better grasp of the process. Perhaps they thought additional information in the endnote would have been redundant considering the example provided.
Please correct me again if I'm mistaken, but there appears to be no reason at all for a Record Date in the "over 25%" situation.
The Record Date is an initial accounting of shareholders entitled to the dividend which is later corrected by the Due Bill for any shares sold between the Record Date and the Ex-Dividend date. In most cases, shares with Due Bills attached will only be a small percentage of the total shares, so the initial accounting on the Record Date will be quite accurate. The Record Date ensures that the vast majority of shareholdes receive their dividend on the Pay Date. Shareholders who purchase shares near or on the Pay Date would have some delay in receiving the dividend from the additional time required to properly transfer dividend rights for shares with Due Bills attached.
As you can understand, the reason for the special treatment is to ensure that no shareholder purchasing shares on or before the Pay Date suffers an immediate loss from the share price adjustment on the Ex-Dividend Date.
If any of this is still unclear, please keep asking questions.
I'm not sure if we're on the same page yet.
1. August 10 is the record date.
2. August 31 is the payment date.
3. "a seller of the security on August 15, even though the holder of record to receive the dividend, would have to relinquish the dividend to the buyer." Which I believe conforms precisely to the statement that I made in the post that you are responding to:
"In the "over 25% cases" that you describe the shares would have to be held from the record date through the payment date."
Whoever bought the securities from the seller on August 15 was not a shareholder on the record date yet still receives the dividend. The same would be true if a buyer bought shares on August 31. This means you do not have to hold shares from the record date to the payment date. You can buy them after the record date and still receive the dividend as long as you still hold the shares through the payment date. The Due Bill ensures that the dividend is paid to the shareholder entitled to it.
I think we can all agree that anyone who did receive credit would be best advised not to spend it due to what was stated in the PR.
In the "over 25% cases" that you describe the shares would have to be held from the record date through the payment date.
I also thought this was the case originally. I actually thought the company would not have to pay dividends on whatever shares were sold before the Ex-Dividend date. The Due Bill clears up my misconception. Once people understand that the Ex-Dividend date is after the Pay date on 25% or greater dividends they will understand the reason for the Due Bill. Understanding that the stock price will be adjusted down by the dividend amount on the Ex-Dividend date, without a Due Bill, there would be no reason to purchase shares between the Record Date and the Ex-Dividend date. The example is very clear in the following document.
For example, if an issuer has announced August 10 as the record date and August 31 as the payable date, then the ex-date will be September 1, the first business day after the payable date. In this example, September 1 is the day on or after which a buyer would purchase the security without the dividend and, therefore, the day on which the price of the stock is adjusted downward. In this example, a seller of the security on August 15, even though the holder of record to receive the dividend, would have to relinquish the dividend to the buyer. Indeed, because the value of the security on August 15 has not yet been adjusted downward to reflect the dividend distribution, the seller in this example would be unjustly enriched by keeping the dividend.
http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p003997.pdf
Due Bill Explanation. http://www.sec.gov/pdf/nasd1/11000ser.pdf
Not in this case, for whatever reason. The ex date was 28 September:
Yes, you are correct. The dividend posted was less than 25% and that is why normal dividend dates were applied.
Please read this document so that you have an understanding as to why dividends 25% or greater are treated differently.
http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p003997.pdf
Dividends Or Distributions 25 Percent Or Greater Than Security Value
The second method, under subparagraph (b)(2) of Rule 11140, provides that for dividends or distributions that are 25 percent or greater of the value of the subject security, the ex-date shall be the first business day following the payable date. For example, if an issuer has announced August 10 as the record date and August 31 as the payable date, then the ex-date will be September 1, the first business day after the payable date. In this example, September 1 is the day on or after which a buyer would purchase the security without the dividend and, therefore, the day on which the price of the stock is adjusted downward. In this example, a seller of the security on August 15, even though the holder of record to receive the dividend, would have to relinquish the dividend to the buyer. Indeed, because the value of the security on August 15 has not yet been adjusted downward to reflect the dividend distribution, the seller in this example would be unjustly enriched by keeping the dividend. The seller would have received the value of the dividend twice: first, as fully reflected in the unadjusted price of the stock on August 15; and secondly, as subsequently paid by the company to record date holders.
The information was based on a 25% or greater dividend. In such cases you must hold stock until the EX-Dividend date which is after the Pay Date. In fact, in these cases, you can actually purchase shares on the pay date and still get the dividend. A Due Bill is attached to purchased shares. Please look up Due Bill on the SEC, NASDAQ, or FINRA websites so you have an understanding of how dividends over 25% are treated. You may also look at news for MedQuist (MEDQ) for a recent example. Please at least do some research before posting false information.
The "on or after" associated with the $5,000 fee makes it difficult to fully understand when modifications can be made. Posting definite dates as you have done are merely predictions.
Late SEA Rule 10b-17 Notification (Notice submitted on or after corporate action date) $5,000
http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p121988.pdf
I don't understand how you can post...
If the company wants to make any changes with FINRA, it must do so by tomorrow.
And then post again and say...
My information on that is merely anecdotal.
Definition: Evidence in the form of an anecdote or hearsay is called anecdotal if there is doubt about its veracity; the evidence itself is considered untrustworthy.
I don't think any of us can fully understand the rules that have only been in effect for just over two weeks.
http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p121988.pdf
Those holding stock with E*Trade can navigate to Trading and Portfolios/Portfolios/Income Estimator to see dividend information for EIGH.
Response to question 1.
The SEC information is not implied, it is quite clear. "...the ex-dividend date shall be the first business day following the payable date."
Response to question 2.
Special merely means out of the ordinary. The greater or less than 25% is not a requirement to be special. You will not find the term "Special Dividend" in the document I quoted.
I hope that helps a little.
Does this example help?
Under NASDAQ rules applicable to cash dividends which are 25% or greater of the value of the subject security, MedQuist anticipates that the ex-dividend date will be the first business day following the dividend payment date, but no assurance can be given by MedQuist that this will be the case and the determination of the ex-dividend date will be made by NASDAQ upon notification that the conditions to the payment of the dividend have been satisfied.
http://www.prnewswire.com/news-releases/medquist-provides-update-on-special-dividend-timing-104579004.html
The SEC is a pretty reliable source.
http://www.sec.gov/pdf/nasd1/11000ser.pdf
(b) Normal Ex-Dividend, Ex-Warrants Dates
(1) In respect to cash dividends or distributions, or stock dividends, and the issuance or distribution of warrants, which are less than 25% of the value of the subject security, if the definitive information is received sufficiently in advance of the record date, the date designated as the "ex-dividend date" shall be the second business day preceding the record date if the record date falls on a business day, or the third business day preceding the record date if the record date falls on a day designated by the Committee as a non-delivery date.
(2) In respect to cash dividends or distributions, stock dividends and/or splits, and the distribution of warrants, which are 25% or greater of the value of the subject security, the ex-dividend date shall be the first business day following the payable date.
Why is it continually posted that dividends must be paid from retained earnings? This is not the case. Here are two examples.
MedQuist (MEDQ)
Proceeds from the financing will be used to refinance the debt incurred by MedQuist in connection with its April 2010 acquisition of the assets of Spheris, Inc. and to pay a one-time special cash dividend of $4.70 per share to all MedQuist shareholders of record as of October 11, 2010
http://www.prnewswire.com/news-releases/medquist-signs-financing-agreements-declares-special-dividend-104145703.html
Warner Chilcott (WCRX)
As a result of closing the amendment, the related borrowings and the issuance of the senior notes, Warner Chilcott's board of directors has today declared a special cash dividend of $8.50 per share.
http://www.prnewswire.com/news-releases/warner-chilcott-completes-amendment-to-existing-senior-secured-credit-facilities-and-closes-senior-notes-offering-company-declares-special-cash-dividend-of-850-per-share-and-updates-full-year-2010-financial-guidance-101182874.html
A second release from MedQuist explains NASDAQ rules for dividends over 25% and that the stock must be held to the ex-dividend date.
http://www.prnewswire.com/news-releases/medquist-provides-update-on-special-dividend-timing-104579004.html
Essentially EIGH saves 10 cents for every share sold before the ex-dividend date due to the fact that no dividend payment is required for those shares. Total savings is $476,106.90 for the 4,761,069 shares traded since the record date so far. The more shares sold before the ex-dividend date, the more money retained by the company.
I thought it would be an interesting release for everyone to read. I only directed it toward you because I thought you would find it the most interesting of all and may change your thoughts on how dividends could be paid.
Not trying to make a direct comparison, but for those who think a dividend of this magnitude is so unheard of, take a look at the latest news from MedQuist (MEDQ). Far greater than 25% and the dividend is not coming from retained earnings.
http://www.prnewswire.com/news-releases/medquist-signs-financing-agreements-declares-special-dividend-104145703.html
Please remind MedQuist http://investorshub.advfn.com/boards/read_msg.aspx?message_id=54941801
The CFO and Trustee only disagree by $723,678,000
LandAmerica Financial Group,Inc.
Balance Sheet as of December 7,2009
Preparer: Trustee for the Liquidation Trust
($ thousands)
Total Shareholders' Equity $(61,662)
http://chapter11.epiqsystems.com/document/GetDocument.aspx?DocumentId=1142722
LandAmerica Financial Group,Inc.
Balance Sheet as of October 31,2009
Preparer: Chief Financial Officer
($ thousands)
Total Shareholders' Equity $662,016
http://chapter11.epiqsystems.com/document/GetDocument.aspx?DocumentId=1059142
Just a reminder for those who purchased AHM during the period from July 19, 2005 through and including August 6, 2007...
"To be eligible for any payment, your timely, complete, and documented Proof of Claim form must be mailed to the Claims Administrator postmarked on or before March 1, 2010. All forms postmarked after this date will be late and the claim may be denied."
I don't know why they say including August 6, 2007...
"For shares of American Home common stock purchased on August 6, 2007 the Recognized Loss Amount is $0.00."
http://amhomemortgagesecuritieslitigation.com/casedoc/American_Home_Notice.pdf
The significance of gaps... a 52 week review.
01/25/2010 Gap Filled @.0250 (reaches high of .0490 before gap fills)
01/20/2010 Gap Formed @.0250
01/19/2010 Gap Filled @.0250 (reaches high of .0600 before gap fills)
01/05/2010 Gap Formed @.0370
01/04/2010 Gap Formed @.0330
12/18/2009 Gap Filled @.0200 (reaches high of .0580 before gap fills)
12/16/2009 Gap Formed @.0330
11/19/2009 Gap Filled @.0010 (reaches high of .0100 before gap fills)
11/06/2009 Gap Formed @.0011
11/05/2009 Gap Filled @.0011 (reaches high of .0026 before gap fills)
11/04/2009 Gap Formed @.0022
10/27/2009 Gap Formed @.0012
10/26/2009 Gap Filled @.0003 (reaches high of .0033 before gap fills)
10/21/2009 Gap Formed @.0013
10/16/2009 Gap Formed @.0007
05/04/2009 Gap Formed @.0004
03/25/2009 Gap Filled @.0002 (reaches high of .0007 before gap fills)
02/25/2009 Gap Formed @.0003
01/30/2009 Gap Formed @.0003
01/27/2009 Gap Formed @.0002
A gap is formed whenever the low of the day is higher than the previous day close.
Some say gaps do not always need to be filled... History often disagrees.
There are currently no gaps at any level left to fill.
If you are responsible for those 101 trades, I would like to politely request that you stop. Nothing shows more weakness in a stock than bumping the price up with meaningless trade sizes. The ask is constantly getting hit here, so there is no reason to add these small trades.
enterprisinginvestor-
Please forward no more brief letters...
Added more at $.025... Seemed like a good idea at the time.
Most recent 8-K...
http://www.sec.gov/Archives/edgar/data/847555/000119312509069729/d8k.htm
Please read item 1.01. Especially the last paragraph.
The Company intends to file a plan of liquidation with the Court, which is expected to include the distribution of the net proceeds from the asset sale and the dissolution of the Company. The $2.35 million in sale proceeds, after payment of Debtor In Possession financing and costs of the sale, will be significantly less than the approximately $5 million liabilities, so the Company’s common stock and other equity interests will receive no distribution on account of such interest. The net proceeds will be allocated to administrative claims, and secured and unsecured creditors.
New York Southern District Court...
Defendants: Hydrogen Hybrid Fuel Cell Corp., Hydrogen Hybrid Corp., Kenneth Owen, David Huffman and John Does 1 through 20
Case Number: 1:2009cv07258
Filed: August 17, 2009
Nature of Suit: Other Statutes - Racketeer Influenced and Corrupt Organizations
http://dockets.justia.com/docket/court-nysdce/case_no-1:2009cv07258/case_id-350843/
Who in the world are you referring to?
Whose scams?
Conrad Wall holds all of the restricted shares…
So what is left for the person you are referring to?
Mission Control to enterprisinginvestor...
According to Nasdaq...
Total shares traded since 11/01/1999 is 38,960,357...
3,247,600 traded on 2/14/2000 between $0.075 and $0.025...
Please update mission status.
From about 10:26am to 11:08am trades were not being reported. Not just this stock but all or almost all OTC stocks. Check a 1 minute chart for a heavily traded OTC stock and it will be missing that time frame. Sold out of sequence trades going through now.
Total preferred shares... 5,600,000
Or did I miss something?
2,150,000 Series A
3,450,000 Series B
Under the Company’s charter, the Company’s Board of Directors is authorized to issue 110,000,000 shares of stock, of which up to 100,000,000 shares may be Common Stock and up to 10,000,000 shares may be preferred stock. As of March 31, 2007, there were 50,273,878 shares of Common Stock issued and outstanding, 2,150,000 shares of 9.75% Series A Cumulative Redeemable Preferred Stock (“Series A Preferred Stock”) issued and outstanding and 3,450,000 shares of 9.25% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”) issued and outstanding.
Only if they could pay off all the debt and have a substantial amount of cash left over...
In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, the holders of Series A Preferred Shares then outstanding shall be entitled to receive out of the assets of the Corporation legally available for distribution to its stockholders remaining after payment or provision for payment of all debts and liabilities of the Corporation, a liquidation preference in cash of $25.00 per share, plus an amount equal to any accumulated and unpaid dividends to the date of such payment, before any distribution of assets is made to holders of Common Stock or any other equity securities of the Corporation that rank junior to the Series A Preferred Shares as to liquidation rights.
http://www.sec.gov/Archives/edgar/data/1256536/000091412104001553/am696881-ex3_1.txt
Waiting for my notification...
On and after July 7, 2009, the Corporation, at its option, upon giving notice as provided below, may redeem the Series A Preferred Shares, in whole or from time to time in part, for cash, at a redemption price of $25.00 per share, plus all accumulated and unpaid dividends (except as contemplated in Section 5(d) below in respect of dividends declared as of a Dividend Record Date prior to the date of redemption and to be paid as of a Dividend Payment Date subsequent to the date of redemption) on such Series A Preferred Shares to the date fixed for redemption.
No, but I did have to check the account the other day when that 50K block went through even though I have no sell entered. The 50K are still with me.
Maybe there are 43 of us.
I can account for 2.325% of the 2.15M.
I don't know if I'm holding a little or alot compared to the other holders.
How many of us are holding here?
Waiting for another possible distribution as well. Hopefully it will be more than 25 cents.
Did they give you all the shares you asked for? When I was buying there were three occasions when they would only give me 400 shares, some days it was even less. It took me over three weeks to accumulate 5000 shares.