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Bio-Matrix
Pays Stock Dividend
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Voyant's
'Rocket' Launched Again
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Bio-Matrix
Pays Stock Dividend |
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If
you already owned shares of Bio-Matrix
Solutions (OTCBB: BMSN), then congratulations - not only
are you now sitting on a significant gain following yesterday's 28% surge,
but you also own more shares.
What
gives? Today's the x-dividend date. For every 25 shares of common stock
you owned at the end of the day, you're now going to get one more. The
same ratio applies to preferred stockholders...you get one more share for
every 25 you own.
Super,
but maybe you're wondering how a stock dividend can prompt a 28% bounce.
Remember
the highly-specific terms associated with this dividend? To receive
the stock, Bio-Matrix required that all current shares be registered to
their beneficial owner, or the company at least needed to know who their
beneficial owner is. No big deal, except for any shares that were held
in a margin account. See, any shares held in margin accounts are
actually held in your broker's name (though you still own them)....and
Bio-Matrix isn't going to issue the stock dividend to anybody but the true
current owners.
So,
to get the dividend, all those long owners pushed their shares into cash
accounts. Since the short-sellers have to 'borrow' specific shares from
others' margin accounts, there was essentially not enough supply
to meet the demand for lendable (not really a word, but you get the
idea) stock. Many of those short holders had to 'buy to cover', thus
creating a rally.
That's
the risk you run when you sell short. Any of you who already owned a position
was the beneficiary of their speculation gone awry.
It
was only a one-time thing (for the time being), as shareholders can't place
the stock in a cash account again if they're already in one. Plus,
it's not like the short owners are going to 'buy to cover' again. Still
though, it's nice to see that it can work if the shorts try and do it again
in the future.
In
the meantime, the stock gave us a very nice pop, and I suspect the size
of the move will attract a few new buyers.
You
don't have to do anything else to get your stock dividend as long as Bio-Matrix
knows where to send them - your brokerage firm will handle the paperwork
and processing. That said, if you're unsure as to whether or not you're
all set to receive the stock dividend, it may be worth a phone call.
On
a side note, the best thing you can do to make it hard for the shorts
to try and push BMSN shares lower again is to keep them in a cash account.
It doesn't hurt your values in the least.
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Voyant's
'Rocket' Launched Again |
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Did
you catch the latest news from Voyant
International Corporation (OTCBB: VOYT) regarding their deal with
Nielsen Mobile? I'm glad it came out when it did, not just because it's
more good news, but also because it gives me a chance to highlight
a major division I haven't had a chance to yet - RocketStream.
Here's
the answer to your first question....yes, this is the same 'Nielsen'
that does the television viewing and advertising research. They do a
heck of a lot more than just television though. They rate everything
from web traffic to outdoor advertising. The affiliation with the company
alone gets my investor gears spinning.
Today's
news highlights a relationship with Nielsen Mobile, which rates
the quality of mobile network coverage in major metropolitan areas.
Here's
the 'big deal'...the amount of data collected is massive, and Nielsen isn't
able to send or receive it using conventional methods. The solution
they turned to? You guessed it ...Voyant's RocketStream.
Using
this next-generation data transmission technology, Nielsen can transmit
more than 100 gigabytes of data per day. That's about the size of an average
computer hard drive, which would take hours to send using conventional
'FTP'. RocketStream can accelerate that transmission speed into something
much more manageable, like minutes.
That's
why this is such a big deal - the growing need for speed as file sizes
get bigger. You getting your e-mail faster on your laptop is nice,
but not critical. Voyant is helping companies do things they just flat-out
couldn't do before, by making the web work faster for them. Those things
are
critical.
OK,
so how's it work?
Most
of you know by now I'm a writer and an analyst, but not a computer technician.
That's actually a good thing, as it will force me to translate into plain
English exactly what RocketStream is. Here goes.
That
'http' in front most web addresses? That stands for hyper-text transfer
protocol. It's a language used to send what ultimately are turned into
web pages (like the one you see now).
You
may have heard of 'ftp' as well, which is an acronym for file transfer
protocol.
HTTP
works, but never seems to be fast enough when trying to load a website.
FTP, as you might imagine, is great for sending and receiving files that
aren't
designed to become web pages. Again though, it never seems to be fast enough.
RocketStream
is a whole new kind of transfer language...and can be up to 200 times faster
than FTP. Better still, deploying it (like Nielsen did) doesn't require
new hardware. It's just software most anybody can run.
And
that's a key point to bring up...no new hardware is needed. That
includes the 'pipeline' - or bandwidth - we seem to be hearing more
and more about.
Folks,
the internet's bottleneck really isn't the limited size or capacity of
the wires (or fiber-optic cables). The problem is that HTTP and FTP were
never designed to maximize the use of these bigger and better data transfer
conduits. Why someone else didn't figure this out a few years ago I'll
never understand, but I'm certain Voyant's investors aren't complaining.
In
fact, VOYT owners have been well rewarded in just the last week. Twelve
cents to nineteen cents over the last four trading days (remember, subtract
one for the holiday)? That's a 58% rally. I hope you were already in
a position per our recommendation last week.
If
you weren't in a trade, don't beat yourself up too much - I think
more of the same kind of news is on the way. I can't think of any reason
why the RocketStream technology wouldn't be in demand from hundreds
of other companies.
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