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Wednesday, 09/22/2010 3:34:56 PM

Wednesday, September 22, 2010 3:34:56 PM

Post# of 42997
EEGC dividend is a death blow to shorters:

Here is how it works;

There is an exact amount of shares that are outstanding. Naked shorted shares add to the volume of shares but are fake or illegal.
If a dividend is declared its based on the outstanding shares.
Example: $1 dividend for 1 million shares = a company payout of $1 million dollars. However add in the naked shorts and the brokers will have accounts of say 2 million shares. Comes payout time the brokers or share holders receive $1 million so there is a short fall of $1 million that the share holders are entitled to. Who makes up the short fall? The brokers are responsible for the payment but don't think for one minute they are going to pay it. No way! They will go after the market makers and seek restitution. Thats why they will cover and cause a run on the stock price. Law of supply and demand takes over and large demand and short supply means price goes up. Enjoy this picture. The covering can also be caused by other methods then a dividend.

This is only my opinion!

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