"Logic would dictate that if a dividend was paid that the company was profitable"

Its also logic that stock dividends will result in an increase in shares outstanding. As a result the company's stock price will decrease.

I oppose any stock dividend unless this company succeeds in becoming a mid to large cap stock. Why not invest in J&J, Procter & gamble, Exxon, or Coke? They're well established blue chip stocks that reward its investors with dividends.