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Microcap & Penny Stocks : Amazon Natural (AZNT)
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To: Jeffrey S. Mitchell who wrote (7464)9/29/1998 7:33:00 PM
From: Janice Shell   of 26163
 
I'm confused about this dividend. Isn't it paid in cash?

No. It's a stock dividend, not a cash divvy. EDII did the same thing recently. (Go take a look at its chart.) Such a dividend is meaningless for the current shareholder: his shares are increased by 5%, but shares outstanding are also increased by 5%, and so stock price should also drop by 5%; the whole exercise is essentially pointless. The idea, of course, is to make the marks feel they're getting something for nothing.
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