Replies to post #39712 on Bots Inc (BTZI)

[lesgetrich]

The value of a dividend is normally subtracted from a stock on the XDATE. It is the actual value that is reported to the IRS for tax purposes. In other words if you are given a dividend of $.10/share, then $.10 is subtracted from the closing price of the stock on the day before the XDATE. In the S-1, MCIG states that the value of the VCIG shares is no greater than $.01/share. This has been consistent through each iteration of the S-1. Unless the SEC asks them to update it, we will see about $.01 subtracted from MCIG's pps on the date of the effective statement. Even if they update it based on the financials in the 10-K, VCIG only had 2 weeks of sales and the revenue amounted to under $12,000.

If there's more than a $.01 drop in MCIG's price after the effective statement it will be due to people selling the shares they've been holding to get the dividend not due to the dividend itself.

[hobowilly]

if MCIG is-gonna-"gift"-us-VCIG-shares….shouldnt-the-PPS-reflect-that-gift????

I don't remember exactly when the div deal was announced but the IPO was filed on April 21, 2014. The closing price on that day was $.595. Currently the price is $.39. Do the math.

Many people have hung and hung and hung and hung around for the "gift" and in the process lost a lot of money.

So taking that into consideration I think it's a stretch to call the div a "gift."

More like a payoff for not selling