8000 Incorporated (EIGH)

[Toxic Avenger]

I can understand your wanting to forget about the dividend disaster, but it remains that EIGH could have easily offered the stock dividend and supposedly flushed out the naked short position. It would have cost very little and it would have been completely in line with their first dividend announcement. They could simply have said, "We can't use the $40 million, so we must use the current retained earnings figure of $900k. Since $300k will only allow for a $.0021/share cash dividend, we are issuing the 10% stock dividend".

Now why didn't they do that?

And I hope you're not suggesting that they have important inside information about the stock and instead of disclosing that to shareholders, they are using it for their own advantage. The SEC would definitely frown on that and they probably don't want to add fuel to that fire.