Electronic Cigarettes International Group Ltd fka ECIGQ

[pkdaddy64]

Ray, I have done my part both by calling speaking to Jim McCormick and sent a email to each of the BOD. I hope everyone here does the same, It is very effective. read the S.A. article on Stock Divy's below:

"When a company issues a stock dividend there must be an audit of all issued and outstanding shares to determine who to issue the stock dividend to and how much stock to issue to them. A legal short seller borrows shares and sells those shares onto the open market and until they buy them back (cover) and return them to the lender they are responsible for interest, margin requirements and any dividend payments (be it monetary or shares of stock) owed to the lender. Naked short selling is short selling a stock without first arranging a borrow. If the stock is in short supply, finding shares to borrow can be difficult.

If a company declares a stock dividend both the naked short seller and the short seller are on the hook to deliver those shares to the lender. This forces the short seller to "buy to cover" so they can return the shares to the lender. Couple this with the typical price appreciation of a dividend announcement and the fact that short sellers can get caught in a stampede that is self-perpetuating because all of the short sellers try to "buy and cover" or exit at once. This phenomena is known as a "short squeeze" and drives the share price higher as shorts rush to the exits to close out part or all of their positions or at least whatever is required to satisfy the stock dividend requirement. Stocks with a high percentage of the float sold short are particularly susceptible to this phenomena."