This originally posted by Hockmir. I can only hope
Post# of 5282
Posted On: 10/18/2013 7:34:31 AM
This originally posted by Hockmir. I can only hope he will forgive me for stealing it.
I was just considering a hypothetical situation.
Several posters on this board have postulated that with the rapid increases in earnings we have seen, the BOD might wish to pay some modest dividend to the shareholders.
We all know that in the event of the declaration of a dividend, then shorted shares, should there be any, will be obliged to pay a like amount to the holders of those shares, pressuring the market makers who issued them.
What happens if the BOD issues a share dividend? Do the market makers need to come up with TEVE shares to pay the shorted shares off with? If so, where will they get them? I suppose they could issue more shorted shares, but that would just dig them even deeper into the hole. Or, I also suppose some of the long term holders could be induced to part with some shares at the approximately $10,000 level we see posted on the ASK side of the L2's that have been posted.
Just wondering, is all.
I was just considering a hypothetical situation.
Several posters on this board have postulated that with the rapid increases in earnings we have seen, the BOD might wish to pay some modest dividend to the shareholders.
We all know that in the event of the declaration of a dividend, then shorted shares, should there be any, will be obliged to pay a like amount to the holders of those shares, pressuring the market makers who issued them.
What happens if the BOD issues a share dividend? Do the market makers need to come up with TEVE shares to pay the shorted shares off with? If so, where will they get them? I suppose they could issue more shorted shares, but that would just dig them even deeper into the hole. Or, I also suppose some of the long term holders could be induced to part with some shares at the approximately $10,000 level we see posted on the ASK side of the L2's that have been posted.
Just wondering, is all.
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Holding TelVue shares has made it the billion dollar bomb shell it is.
There is no limit to the loss of someone has been caught in a short squeeze.
There is no limit to the loss of someone has been caught in a short squeeze.