Replies to post #89992 on Bancorp International Group Inc (fka BCIT)

[op9171787]

2Late, thx for your efforts so far. tell me, how long ago did Megas reply to you on this idea? was this in the last few days or was it a while back?
thanks.

imo

[mainuh]

I understand what you are getting at 2Late....
but there's one big hitch to it all. The way it works, is whatever the current OS is times whatever the cash divi might be, has to be set aside in an account, (in the example you cite .19 x 525 million= big bucks) and the company cannot touch it. Also, the company has to have the required amount on the books, and if you look at the last filings, there isn't nowhere near enough cash there to do it. Even if the insiders decide to return or forgo what they would get, it doesn't matter, that money has to be put in that account for disbursement initially. A company cannot issue a cash divi and say, "well the shorts will pay this for us" it doesn't work that way, if it did, you'd see all kinds of stocks announcing that and trying to get away with it. The money has to be there, and has to be approved by the powers that be, if it's there to begin with, then it gets approved quickly, a record/ex/pay date is announced and the process goes forward.
You're right, it's not our problem, it would be on our brokers to deliver it if it was issued.
I commend the idea of a cash divi whenever possible, it's the single most effective way of clobbering any shorts in any stock, imo. Whenever you see a company come out with their first cash divi the stock usually has a very nice run up, as those that shorted it cover and go long as fast as they can, they don't want to be caught short and have to pay the cash divi out of their own pocket, which is what happens btw if they don't cover. The whole reason for having Rule 203 in the market is to ensure oversold positions in any stock get 'bought-in' as they should. Unfortunately for BCIT the SEC has 'temporarily' suspended this Rule/law for over two frigging years, hows that for an injustice to investors/shareholders/and the company, the laws were bent to accomodate the shorts, imo, and that's just wrong/illegal on so many levels...........
You're idea is unique and well thought out, but it could pose some more legal troubles for the company, and after all the legal bs the company has gone thru, I don't see it happening, imo.
Glad you passed it along to Megas though~

Mainuh