Replies to post #41243 on Microelectronics Technology Co. (fka MELY)

[stcks4prft]

My understanding is that the preferred shares are themselves the dividends. Hence they are called preferred share dividend. Somebody correct me if this is wrong.

[ihubmkasp]

It's a preferred share dividend (every 5M you own gets you one preferred share) that allows the preferred shares to be converted into 100k common shares in one year. Basically it ends up being a 2% common share dividend, payable a year from now.

If the company is still in business, it could certainly be a better return than that (if they're at .001 in a year rather than the .0001 they're at now, then you've actually received a 20% dividend assuming you bought the 5M at .0001). Likewise, if they are out of business, then it's a 0% dividend.