To: WEBNATURAL who wrote (7912 ) 4/29/1999 9:33:00 PM From: Gary Jacobs Respond to
td, just keep that wonderful attitude. can't always say i agree with you but it's always refreshing to see such a positive outlook.attempting to do in announcing a dividend last year. it was discussed here on the thread that the purpose was to squeeze the short position. kind of laughable now that i see better what that requires. they had the right idea but as is the case in so many things they've done, failed miserably in execution. as i understand it, the dividend required shorts to cover outstanding positions or cover the dividend. add to that good news and the combination could result in higher share price. but at .01 per share, it wasn't much of a squeeze. the shorts (if there were any) simply covered the dividend and continue on about their business. there's no place to buy the dividend shares! . so that means they need to cover their outstanding short positions. and they've announced a dividend date in short order. add to that killer news (which is anticipated) and the result could be quite entertaining. this is my understanding of what was intended to happen with the bnez lame dividend plan.
