Drone Services USA Inc. (DSUS)

[mc6102]

Regarding ex-dates and the post you wrote where you said: "Also I had a dividend just now with BWMG they called it a dividend but it was a reverse split"...

Ex-dividend date refers to the date a dividend is no longer transferable. The means that, in the case of a dividend, the price per share is adjusted on the ex-date with regard to the value of the dividend. It does not mean all divis come with R/S's.

I found it really hard to wrap my head around at first, why the R/S's ex-dates would always show under "Dividends" on the Daily List. However, given the explanation of an ex-dividend date, it eventually made sense to me.

(BUT: Let me make myself clear... there is no R/S slated for VDSC as far as any information I have seen, this is a dividend example!)

For instance, if a 10:1 R/S occurred, the pps would adjust to reflect the split the ex-dividend date. Price would be higher with a lower O/S (those who have traded for awhile are well familiar with those) Same goes for the big-board stocks: if they pay out a .40 per share cash divi, then the trading price opens 40 cents lower the next day because it comes out of company reserves, technically decreasing the value of the company (existing orders, unless specified, are adjusted as well). However, larger companies that pay good dividends usually absorb that decrease in the short term (even same day) because the ability to give a positive dividend insinuates strength and growth.

In VDSC's case however, the Spin-Off is unique. No one is quite sure of actual value right now, and they are doing an IPO to boot? Also, compared to other divis in this venue, while the spin-off is gaining value, VDSC is gaining value simultaneously with the cruise line they are about to launch, etc. etc.

To say the least, this is a very interesting stock!