Garick:

I agree with you that it would take a lot of cash to pay a dividend. Even 1/10th of a cent per share would be $400,000.00. My point was that if there is cash available for a significant stock repurchase, that cash might be better used as a dividend.

Using the 400 M share number, let's say that SFMI is going to buy back 25 M shares. SFMI might think that they are reducing the outstanding shares to 375 M, but they might just be buying 25 M new shares naked shorted into the market. Then SFMI is out of its 15% buyback cash which has gone to the naked shorters, and the float remains 400 M. With the dividend scenario, SFMI would pay to the 400 M shareholders and the naked shorters would pay to the shareholders to whom they have still failed to deliver legitimate shares. The share buyback is no pain to naked shorters, but the dividend is. Even if SFMI gets cash, it may be better to just skip the share buyback until they can issue a dividend.

Again, though, you are right. We need cash to do either one and this discussion is just hypothetical until we have it. And, I am sure that it is much more complicated than my example above. Remember, the crooks have been at this for a long time.

O