In a discussion about these numbers on the SAFC page I posted a reply. I would be interested in opinions from people here too. This is what I posted:
I wonder what the number of outstanding shares was on the ex-dividend date. I wonder if the insiders were expanding that number just prior to then to reduce the number of shares of SAFC were given out per share. This is another potential FINRA holdup.
In their initial announcement of an upcoming dividend they stated in the announcement that the outstanding shares were around 550 mil. The outstanding share count was about 100 mil higher when they gave the ex-dividend date. Now it is 200 mil above that number.
Shady shady shady. Considering that we know a significant portion of those added shares---possibly all of them---are not, or at the very least were not part of the float as of the ex-dividend date, FINRA would take notice of such deception without a doubt.
If all of the shares have hit the open market since the ex-dividend date it would easily explain the price drop. Even if only a portion of them are newly part of the float.
I repeat---Shady shady shady. Here are the official numbers as of 3-31-13:
MFTH Security Details
Share Structure
Market Value1 $909,743 a/o Jun 12, 2013
Shares Outstanding 649,816,679 a/o Mar 31, 2013
Float Not Available
I just checked the 10-Q filed in early for the quarter ending 3-31-13. It states:
Common stock, par value $.0001 per share, 2,000,000,000 shares
authorized; 649,816,679 and 91,903,319 shares issued and
outstanding, respectively
So if I am reading that correctly the float was less than 92 mil shares as of 3-31-13 That means that 86% of the dividend was going to be paid out to themselves at the point it was announced. Since that time, one of two things has happened. Either MFTH used the announced dividend as a pump and dump and lined their pockets with a bunch of cash or they gave themselves an additional 200 mil shares to increase their share of the dividend to almost 90%.
Based on the share volume and the fact that once MFTH hit .004 it fell back very quickly I wouldn't be surprised if it was a combination of the 2 moves thereby giving themselves some quick cash while intending to still own more than 8 out of 10 SAFC shares with a guaranteed value of .70 per share.
Shady shady shady.
AI
