There has been much questioning of NTEK management for increasing A/S, particularly as no reason has been given. It has been stated that s/h will be pleased when they are told the why. It has been speculated that it is to be used to acquire content - or maybe purchase a company - or pay for services rather than use cash. Any or all of these actions may be in effect and could be positively explained. However, no one has mentioned using part (or all) of the increase in A/S as the source of a stock dividend. At the first pass this would seem to have no effect because the current shareholders would still have their same relative ownership after the dividend as before. But, there is one group for which this is not true - naked shorters. If I understand the rules, when a dividend is declared, all "shareholders" must in essence prove that they in fact own the shares they purport to own. If you are a naked shorter you have to cover your naked(ness) as it were. Depending on the number of naked shares involved, this may precipitate a squeeze. Just a thought, and maybe just a hope.
GLTA. Go NTEK.
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