InvestorsHub Logo
icon url

Dakota Dad

09/18/10 4:29 PM

#55649 RE: KrayzeRicky #55635

If the shorts do not want to pay out a cash dividend (up to .10/sh) or a 10% stock dividend, they will be out by September 27, otherwise they will be paying.

IMO this coming week is a very likely squeeze week. This dividend adds a great deal of interest. Think of it: If there is a 10 cent dividend per share, every short must pay 10 cents per share.... that means if you have just 20,000 shares, they owe you $2,000 by October 15. Now consider the likely millions of shares that are short.... Would you want to pay $millions to stay short this stock?

If it is a stock dividend, the shorts have to buy shares to cover the stock dividend. The longer they wait, the more they will likely pay. They just need to get out and BUY before the 27th.

BTW, a lot of the shares were shorted below .10 which means a 10 cent dividend puts them in the red with their shorts. If they don't get out they will have to put out more than they got for shorting it. To me, anyone wanting to stay short through the dividend needs their head examined.

Great week coming IMO.

DD