VDSC(0.0097) DIVIDENDS HUGE DD post >>>(MOASS COMING)>>>
VDSC is spinning off a subsidiary, IMAG group (from July 1, 2013 PR):
"Alas International Holdings, Inc. is pleased to announce the spinoff of its subsidiary IMAG Group, Inc. formerly Red Tide Defense Group, Inc. The company has filed the Spinoff with FINRA today and expects to have it completed within the next two to three weeks."
Spin-offs of subsidiaries (the exact words used in VDSC July 1, 2013 PR): are called "SPECIAL DIVIDEND" and different rules apply to these: http://en.wikipedia.org/wiki/Special_dividend
Many people have ERRONEOUSLY posted the regular dividend rules in regards to VDSC. The regular rules state that:
"The ex-dividend date is two business days prior to the record date. To be a stockholder on the record date an investor must purchase the stock before the ex-dividend date. The latest date he can buy the stock to be a stockholder on record and be entitled to the dividend would be one day prior to the ex-dividend date (this includes extended hours (pre-market and after-hours) of that day) to allow for the three stock trading day settlement of the stock purchase. If the investor purchases the stock the day before the ex-dividend date the investor would be a stockholder on the record date and would be entitled to receive the dividend payment" http://en.wikipedia.org/wiki/Ex-dividend_date
IF VDSC was giving a REGULAR DIVIDEND, then you have to OWN VDSC shares by 5pm EST July 9th to be a shareholder on record on July 12th. You could sell on July 10th (Ex-Dividend date) and still get your IMAG dividend.
UNDER SPECIAL DIVIDEND RULES, you have to be owner of VDSC shares by 5pm EST July 9th AND HOLD UNTIL EX-DIVIDEND DATE, which is one day after the dividend payout date (or distribution date). Since the PR said nothing about ex-dividend date and clearly identifies this as a spin-off of a subsidiary, this dividend may in fact be a SPECIAL DIVIDEND
In other words, if you sell your VDSC shares on July 10th, you've GIVEN AWAY your IMAG DIVIDEND to the buyer of your shares!!!. If someone sells 16.4 mil of VDSC shares on July 10th, they've just given away their $100,000 IMAG DIVIDEND!!!!
This may set up the following MOASS (mother of all short squeezes) scenarios:
1. You have to hold from July 9th until dividend is paid, to get the dividend (Special Dividend rules apply because this is a SPIN-OFF of a SUBSIDIARY). Hence majority of float will be locked up. http://en.wikipedia.org/wiki/Special_dividend
2. Any VDSC shares bought AFTER July 9th but before dividend is paid, will COME WITH the dividend!!! Whoever sells after July 9th actually just gave away their dividend (some dumb retail will do this for sure)...this will add buying pressure long after July 9th...BUT ALMOST THE ENTIRE FLOAT WILL ALREADY BE LOCKED UP!!!!
3. Any VDSC SHORTS have to cover by July 9th or they will OWE a dividend of 1 IMAG share per 164 VDSC shares short.
4. Any shorting of VDSC done AFTER July 9th will mean the SHORTer OWES 1 IMAG share per 164 VDSC shares sold short - owed to whoever bought those shares. This will continue to be in effect UNTIL the dividend is paid...if MMs short VDSC after July 9th they are getting burned by OWING a very EXPENSIVE dividend...
SUMMARY: 1. SHORTs must cover by July 9th, and any shorting after July 9th will be penalized by owing 1 IMAG share per 164 VDSC shares sold short = MOASS. VDSC SHORTS MUST COVER BY July 9th and THEY CANNOT SHORT VDSC AFTER JULY 9th AT ALL or they get penalized by owing IMAG shares!!!
2. Buying pressure will continue not only until July 9th but right until dividend is PAID...VDSC could run CRAZY way past July 9th...and those who sell their VDSC shares on July 10th and after (until divy is paid) just GAVE AWAY THEIR DIVIDEND!!!
We're talking about a complete VDSC SHORT WIPE-OUT and BUYING PRESSURE into a LOCKED-UP FLOAT!!!! This could be HUGE!!!!
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HERE ARE SOME EXAMPLES OF SPIN-OFF DIVIDENDS THAT RAN PARABOLIC PAST THE RECORD DATE, INTO DIVIDEND PAYOUT DATE (or DISTRIBUTION DATE):
Note that in these 3 cases, the dividend payout date was 1-3 weeks after the record date, and ex-dividend date was the following business day after distribution date.
Special Dividends are included to our Subscribers and will list upcoming and historical companies that have announced Special Dividends. Special Dividend Coverage will include the Special Dividend Amount(s), Record Date, Ex-date, Payment Date, and Ex-distribution Date or Date which the stock/security will begin trading on an ex-distribution basis.
When a Special Dividend is declared by a Company, it is important to know if the Percentage of the Special Dividend being paid is more or less than 20% of the stock/security price at the time the Special Dividend is declared.
Special Dividends 20% or less of the stock/security price, not a Spin-off of a new Company, Scrip or Due-Bill (regardless of its size in relation to the listed security) the dividend is treated as a regular dividend in regard to the holding requirements. If you purchase a Special Dividend stock prior to the Ex-dividend Date, and sell on the Ex-dividend Date or after, you are a stockholder on the Record Date and YOU WILL receive the upcoming declared Special Dividend payment.
Special Dividends 20% or less of the stock/security price paid in cash or stock must be purchased one stock market trading day prior to the Ex-dividend Date, three stock market trading days prior to the Record Date. The Ex-dividend Date is the earliest you can sell the stock/security to receive the declared upcoming Special Dividend.
Special Dividends 20% or more of the stock/security price paid in cash or stock, Spin-off of a new Company, Scrip or Due-Bill (regardless of its size in relation to the listed security) the Exchanges require that the Ex-dividend Date be delayed, or begins trading Ex-distribution one market trading day after the Payment Date.
Special Dividends 20% or more of the stock/security price must be purchased a minimum of three stock trading days prior to the Record Date or Date of Record, one stock trading day prior to the Ex-dividend Date as you would a Regular Dividend. However, the earliest you can sell the stock and still be entitled to receive the Special Dividend, is one market trading day after the Payment Date, the delayed Ex-dividend Date or date it begins trading Ex-distribution set by the Exchange.
When large or valuable cash or stock dividends (usually 20% or more), or a dividend not in kind (i.e., a distribution of securities of another issuer), or a split-up is declared, it is the policy to postpone the Ex-dividend or Ex-distribution Date until the dividend has been paid. The reason for this is so that the stock is not quoted at the substantially lower Ex-dividend or Ex-distribution price until the distribution is received by shareholders. If this were not the case, the collateral value of the stock would be reduced between the Ex-dividend Date three days prior to the Record Date and Payment Date, and the shareholder might be required to provide additional collateral.
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