Replies to post #45482 on Medinah Minerals (MDMN)

[Ex Blockman]

It's increased, and that's a fact. FINRA stated it won't trade ex-dividend. So I look at it that I now have 10% extra stock. It's a good thing I won't be tempted and can't sell for six months. Those extra 10% of stock are going to be worth multiple dollars.

Have I mentioned that We Have A Deal! The Deal is Done! MDMN is now a capital company! Get used to it people. The crooks couldn't drive MDMN out of business. Good try though! ROTFLMAO!!

[Veblen]

Not missleading at all.

The intrinsic value of the company does not rise because of a stock dividend.

Therefore if more shares are issued via stock dividends the price per share in the market will decrease by virtue of the additional shares issued.

Now if you had a 100 shares that became 110, presumably and only in reference to the stock dividend effect, the price per share will decrease (all other factors being equal)and you can only sell your unrestricted original shares at a "lesser price then prior to the stock dividend"

Effectively the percentage of your investment that you can liquidate drops below 100%. I don' think you will disagree with that.

The share price can rise or drop based on other factors but the company has restricted, at least for six months, the number of its outstanding shares that can be sold by the stockholders.

I am not trying to predict the price per share etc., only the effect of the stock dividend when all other factors are ignored.

You could take the position that decreased liquidity equals a lesser share price but I don't believe that it will make much difference in the MDMN share price as it is obvious the the share price is really based on your belief in the company