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Re: theindustriesdriver post# 41883

Friday, 09/18/2009 12:46:31 PM

Friday, September 18, 2009 12:46:31 PM

Post# of 103340
"Generally, special dividends are declared after exceptionally strong company earnings"

Note the term "generally". This is absolutely not the case with EXPH or any pink sheet stock.

Just be weary, this move is not done from strength, but rather as a desperate defensive strategy. You did notice that the release appeared minutes after the price dropped below $1?

Additionally, from the PR, they are: "currently reviewing the possibility of a special dividend". This is just a headfake. Did the MMs flinch, or did MOMO guys misread the release? My guess is the latter.

There are considerable legal costs to restructure the company and spin off a division via a special dividend. Is this REALLY the best use of the company's very finite cash reserve? I'd bet that it never actually happens...