to get the 1 $ DIVI you have to be in before july 9th and SHORTs must cover by July 9th, and any shorting after July 9th will be penalized by owing 1 IMAG share per 164 VDSC shares sold short = MOASS. VDSC SHORTS MUST COVER BY July 9th and THEY CANNOT SHORT VDSC AFTER JULY 9th AT ALL or they get penalized by owing IMAG shares!!!
UNDER SPECIAL DIVIDEND RULES, you have to be owner of VDSC shares by 5pm EST July 9th AND HOLD UNTIL EX-DIVIDEND DATE, which is one day after the dividend payout date (or distribution date). Since the PR said nothing about ex-dividend date and clearly identifies this as a spin-off of a subsidiary, this dividend may in fact be a SPECIAL DIVIDEND
In other words, if you sell your VDSC shares on July 10th, you've GIVEN AWAY your IMAG DIVIDEND to the buyer of your shares!!!. If someone sells 16.4 mil of VDSC shares on July 10th, they've just given away their $100,000 IMAG DIVIDEND!!!!
This may set up the following MOASS (mother of all short squeezes) scenarios:
1. You have to hold from July 9th until dividend is paid, to get the dividend (Special Dividend rules apply because this is a SPIN-OFF of a SUBSIDIARY). Hence majority of float will be locked up. http://en.wikipedia.org/wiki/Special_dividend
2. Any VDSC shares bought AFTER July 9th but before dividend is paid, will COME WITH the dividend!!! Whoever sells after July 9th actually just gave away their dividend (some dumb retail will do this for sure)...this will add buying pressure long after July 9th...BUT ALMOST THE ENTIRE FLOAT WILL ALREADY BE LOCKED UP!!!!
3. Any VDSC SHORTS have to cover by July 9th or they will OWE a dividend of 1 IMAG share per 164 VDSC shares short.
4. Any shorting of VDSC done AFTER July 9th will mean the SHORTer OWES 1 IMAG share per 164 VDSC shares sold short - owed to whoever bought those shares. This will continue to be in effect UNTIL the dividend is paid...if MMs short VDSC after July 9th they are getting burned by OWING a very EXPENSIVE dividend...
SUMMARY: 1. SHORTs must cover by July 9th, and any shorting after July 9th will be penalized by owing 1 IMAG share per 164 VDSC shares sold short = MOASS. VDSC SHORTS MUST COVER BY July 9th and THEY CANNOT SHORT VDSC AFTER JULY 9th AT ALL or they get penalized by owing IMAG shares!!!
2. Buying pressure will continue not only until July 9th but right until dividend is PAID...VDSC could run CRAZY way past July 9th...and those who sell their VDSC shares on July 10th and after (until divy is paid) just GAVE AWAY THEIR DIVIDEND!!!
We're talking about a complete VDSC SHORT WIPE-OUT and BUYING PRESSURE into a LOCKED-UP FLOAT!!!! This could be HUGE!!!!
NO ONE CAN AFFORD SHORTING A STOCK WITH A 1 $ DIVI !!!
EVEN an MM can get Burn by doing that
here is a BIG RECENT EXAMPLE :
MM WDCO IS LIKELY TO FILE CHAPTER 11 because of LOTE short squeeze
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