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To: Gator who wrote (1731)	6/11/1998 8:51:00 AM
From: Harold Finstad	Read Replies (1) \| Respond to of 4230

Gator, Making it a stock dividend really would not hurt or help the situation. It would be treated like a stock split. More shares would be credited to both the long and short positions. If there is a short, they would be short more shares but the Company would have more shares outstanding. The only slightly negative of doing this is that it might be a little bit harder for the stock to achieve the $4.00 price necessary for small cap listing. The slight positive is that the shorts would have more shares to cover and longs tend to like stock splits and may get more aggressive at buying the stock. At least by making this a stock dividend, the Company would not be destroying itself. Believe me when I say that people have been shorting stocks for more than a Century. No-one has ever effectively came up an artificial way to trap a short. If there was such a thing, wouldn't you think that there would be no more shorts? The Best way to look at the situation is to either buy more shares and be happy the shorts are providing such cheap shares or if you can't afford that luxury, be patient and let the earning growth of the Company work to the shareholders advantage. Before someone asks the question. Yes, If there is a substantial short in any stock. Registering and shipping the shares or putting them in your name in Safekeeping at your brokerage firm could eventually cause some serious indigestion problems for a short. This may take a while, particulary if the stock is newly traded and has a lot of fresh certificates in Brokers Street Name Accounts. But you see, even that is not an instant fix, for if shorts are really determined that a stock is crap. What they will do is keep the issue in delay by just re-shorting their own "buy-in" at another brokerage. If the Company is really good, the latter is not so much a risk.