trderg, I definitely agree, and a PR / IR company who isn't attached to SFNN. They are a corporate entity which makes perfect sense. This is one thing I'm going to discuss today, as in someone local there in Las Vegas, someone they can see quite often and not always over the phone. That way if they mess up, it's face to face.
Also consider this guys... not to justify a dividend, that's not our call and could care less. Only to say that if one happened, what are your thoughts as to HOW it would work out.
Let me run this by everyone to get their thoughts on what might happen if a Dividend or sorts was implemented. I'm not pushing one, but wonder about the numbers, percentages, and what might happen.
Keeping things simple, let’s suppose the float is 100 million. Let’s also assume since the last 10q cash on hand is approx. 1.3 million.
How much float could one extend thru a dividend and not burden the company? Not really a problem.
How much cash could one extend with a .01cent dividend and not burden the company? Let’s say $400k max.
Usually what happens [JMO] during the first three days of trading could run something like this. Your ideas?
SFNN could trade 60-70% of its float the first FULL day.
SFNN could trade 30-40% of its float the second day.
SFNN could trade 20% on average the third day.
Day traders, profit takers, one-timers, etc...
Let’s say a 15 day grace period is on hand before a final day of trading to lock in shareholders. So the question is how many new shareholders [and actual float] would be onboard/gone then payable?
Assuming those numbers above may be close, its more than likely 30-40% of the float will be attached to shareholders. Can anyone here see a situation where more than 50% of the float could be owned with what's prescribed below?
Considering all those who might trade in and out, drop off after a profit, does one think that maybe we could have more than 30-40% of the float gone?
I believe the actual payout to shareholders in the below scenario would be beneficial, and not create a hardship to the company.
For every 10 shares of stock owned, shareholder receives 1-share stock dividend
For every 100 shares of stock owned, shareholder receives .01 cent dividend
Now, if say 40,000,000 million shares are gone from the float [40%] by end-date, well, you can do the math.
4-million in shares paid out
$400,000 dollars paid out
What I wouldn’t do, and I’ve seen this in the past, is this. Create a lower distribution rate of less than 10-shares per one share owned. If you offer too many shares, the shares will flood the market at a later date, thus driving down the pps, and allowing MM’s a better chance to short. Could we assume that?
They could also put a restriction on those shares for say a year?
HiTemp receives an additional 100,000 shares
HiTemp receives an additional $10,000 cash
The payout to new shareholders on record [speaking of cash] could be distributed say through two-quarters. This would not be a hardship on the company. Let’s say I receive a $5,000 dollar dividend the 2st quarter of 07 with remaining in the 3nd quarter. That way the company wouldn’t pay out any more than say $250,000 per quarter, 1/2 of total.
If the company does a NOBO-List, then compares it to the DTC list to compare actual numbers in additon to the above scenario; you're thoughts?
Let's not discuss why we don't need it or do need it, we'll leave that up to management.
Let's discuss if this makes sense as in #'s and %'s.
Temp'
