Owner
Post by Franko10 ™ on Mar 23, 2005 22:20:57 GMT -5
NEGATIVE FLOAT THEORY:
To understand this, you first need to know what a normal float is... The float is basically calculated as Shares Outstanding minus shares owned by insiders. This is the legit or legal float.
However, because of the Naked Short Selling situation, there has been a wrench tossed into the system, and we are not looking at a normal share float, and need to think outside of the box... (Ref. Sterling 2004)..
What we are looking at is a system that has real shares and counterfiet shares (NSS) compounding together, and only the Market Makers that have created this situation know who is holding which..
For their system to work successfully, it demands some kind of order. Some-one, some-where, has to be in control. Someone has to be keeping records on what shares are legit and which are not. If all shares, both legit and non legit were thrown into the same system, then the system would become unstable, and worthless. There would be nothing to prevent the naked shorted shares from falling into the wrong hands? IMO
Understanding The Float System
Think about the float as being, either the positive or negative, difference in the cash balance shown in your checkbook, and what is actually in your banking account. When you have outstanding checks that haven't cleared the bank, your bank account balance is going to be higher than your checkbook balance. When you make a deposit, your banking balance is going to be lower than your checkbook balance, until the bank adds the deposit to your account. So the float then, is the portion that is in the realm of non-existence, the part that we don't even think about. The difference between the cash balance in our checkbook and what is actually in our account.
In order for the Market Maker's system to work successfully, they would need at least two systems, or accounts. One system would handle and monitor the legit share float. The other system, would handle and keep track the non legit (counterfiet) shares. If any official were to drop in for a visit, they wouldn't notice anything out of the ordinary. IMO
We know that the real float consists of legit (certified) shares, that are registered with the Corporation. So then, it stands to reason, that the non legit (counterfiet) shares that are unregistered, could not be part of the actual float. So what we have then is a two float system. One the actual or positive float.. The other a counterfiet or negative float of electronic entries deposited into the matrix..,
You've been living in a dream world, Neo.. (Ref: The Matrix)
By using the above checkbook illustration again in order to get a good idea about what is happening. Let's think about there being two checking accounts.. One, we'll call account A, is a regular checking account with a balance of $500. The other account B, is a checking account that can be overdrawn to $500 and has a zero balance.
If you were to deposit a check in the amount of $500, from checking account B into checking account A. Account B, would be overdrawn, and account A would show a cash balance of $1000. Even though you would have known that the additional $500 was not actually deposited, the bank records would show that it was, and for all purposes and as far as anyone could tell, it would be real money.
You would have created a positive position with a negative float. The money in account A would have been real money that you could use, and account B would have been shorted $500.
What the market makers are doing is removing shares from system B (were counterfiet shares are being created), and depositing them into system A (the actual float), were they are counted and traded as real shares.
The Day Of Reckoning Has Come!
Eventually, you would have had to repay, the money that was overdrawn. After 30 or 60 days, if the money was not re-deposited to that account, you would probably loose both accounts and end up in jail.
I believe that the Market Makers time has ran out!
I personally do not believe that one day the Market Makers woke up and decided to short sell CMKM Diamonds Inc. out of business. However, that seems to be the way that some people see it. I believe that it went more along the lines as this....
Back when CMKM Diamonds Inc. had approx. 200 billion O/S, and shares were selling like hot cakes at .0001 PPS. It didn't take the Market Makers long to see, by the rate that they were selling, that 200 billion shares weren't going to last long at that price.
As the PPS began to move upwards. The market makers decided to short sell an additional 200 billion shares at .0006 or so. However, because it is illegal to short sell stocks under $3.00 PPS. They went outside of the U.S. and set up an account in Canada, were they could short CMKX legally.
They then began to sell billions upon billions of shares, driving the PPS back down to .0001. Their excuse, and plan being that they would buy back the shares that they had shorted at .0001, and keep the difference. However, they under-estimated CMKX. Shares were still moving at an incredible rate, and shareholders were buying shares and holding. It became impossible for them to be able to buyback the 200 billion shares.
At this point, they either talked to U.C. or it was by chance that CMKX increased the A/S to 500 billion. With 300 billion more shares on the market, the Market Makers should have been able to buy back shares without any problems at all. However, because of Urbans marketing strategy, upcoming dividends and so forth. What they were seeing is that shareholders, that were already holding shares, were buying more instead of selling, and new shareholders were coming in every day. Together they were buying shares up as fast as CMKX could issue them.
The Market Makers believed that eventually the hunger and drive for CMKX shares would die down. After setting into action a plan to short CMKX until the shares became worthless, they also began to send out paid bashers to try to discourage people from buying more shares and to get them to sell. However, shareholders were still buying up shares, even at .0001. Soon afterwards CMKX increased the A/S to 800 billion and issued more shares.
The Market Makers were puzzled that one small company could sell so many shares, and seeing that they weren't going to be able to buy back shares to cover. They decided that their best option would be to short CMKX out of business...
Somehow, Urban Casavant learned what they were doing, and set into action his own plan.
How this will end, is anyone's guess...
However, I see it this way... The market makers are going to have to buy back every share that they have shorted.. The first few billion might not be so difficult and it looks like, from some of the trading that we are seeing, that they may be buying already. However, once the float begins to become more scarce, the PPS is going to start rising. Some shareholders, such as daytraders, will be helping the MM's by selling at between .0005 - .001 PPS. Some will be happy to get .01, and some .05. However, there will be some of us, that will hold out for $1.00 or more, and guess what the MM's will have to pay it or go to prison. IMO
Faith
To understand this, you first need to know what a normal float is... The float is basically calculated as Shares Outstanding minus shares owned by insiders. This is the legit or legal float.
However, because of the Naked Short Selling situation, there has been a wrench tossed into the system, and we are not looking at a normal share float, and need to think outside of the box... (Ref. Sterling 2004)..
What we are looking at is a system that has real shares and counterfiet shares (NSS) compounding together, and only the Market Makers that have created this situation know who is holding which..
For their system to work successfully, it demands some kind of order. Some-one, some-where, has to be in control. Someone has to be keeping records on what shares are legit and which are not. If all shares, both legit and non legit were thrown into the same system, then the system would become unstable, and worthless. There would be nothing to prevent the naked shorted shares from falling into the wrong hands? IMO
Understanding The Float System
Think about the float as being, either the positive or negative, difference in the cash balance shown in your checkbook, and what is actually in your banking account. When you have outstanding checks that haven't cleared the bank, your bank account balance is going to be higher than your checkbook balance. When you make a deposit, your banking balance is going to be lower than your checkbook balance, until the bank adds the deposit to your account. So the float then, is the portion that is in the realm of non-existence, the part that we don't even think about. The difference between the cash balance in our checkbook and what is actually in our account.
In order for the Market Maker's system to work successfully, they would need at least two systems, or accounts. One system would handle and monitor the legit share float. The other system, would handle and keep track the non legit (counterfiet) shares. If any official were to drop in for a visit, they wouldn't notice anything out of the ordinary. IMO
We know that the real float consists of legit (certified) shares, that are registered with the Corporation. So then, it stands to reason, that the non legit (counterfiet) shares that are unregistered, could not be part of the actual float. So what we have then is a two float system. One the actual or positive float.. The other a counterfiet or negative float of electronic entries deposited into the matrix..,
You've been living in a dream world, Neo.. (Ref: The Matrix)
By using the above checkbook illustration again in order to get a good idea about what is happening. Let's think about there being two checking accounts.. One, we'll call account A, is a regular checking account with a balance of $500. The other account B, is a checking account that can be overdrawn to $500 and has a zero balance.
If you were to deposit a check in the amount of $500, from checking account B into checking account A. Account B, would be overdrawn, and account A would show a cash balance of $1000. Even though you would have known that the additional $500 was not actually deposited, the bank records would show that it was, and for all purposes and as far as anyone could tell, it would be real money.
You would have created a positive position with a negative float. The money in account A would have been real money that you could use, and account B would have been shorted $500.
What the market makers are doing is removing shares from system B (were counterfiet shares are being created), and depositing them into system A (the actual float), were they are counted and traded as real shares.
The Day Of Reckoning Has Come!
Eventually, you would have had to repay, the money that was overdrawn. After 30 or 60 days, if the money was not re-deposited to that account, you would probably loose both accounts and end up in jail.
I believe that the Market Makers time has ran out!
I personally do not believe that one day the Market Makers woke up and decided to short sell CMKM Diamonds Inc. out of business. However, that seems to be the way that some people see it. I believe that it went more along the lines as this....
Back when CMKM Diamonds Inc. had approx. 200 billion O/S, and shares were selling like hot cakes at .0001 PPS. It didn't take the Market Makers long to see, by the rate that they were selling, that 200 billion shares weren't going to last long at that price.
As the PPS began to move upwards. The market makers decided to short sell an additional 200 billion shares at .0006 or so. However, because it is illegal to short sell stocks under $3.00 PPS. They went outside of the U.S. and set up an account in Canada, were they could short CMKX legally.
They then began to sell billions upon billions of shares, driving the PPS back down to .0001. Their excuse, and plan being that they would buy back the shares that they had shorted at .0001, and keep the difference. However, they under-estimated CMKX. Shares were still moving at an incredible rate, and shareholders were buying shares and holding. It became impossible for them to be able to buyback the 200 billion shares.
At this point, they either talked to U.C. or it was by chance that CMKX increased the A/S to 500 billion. With 300 billion more shares on the market, the Market Makers should have been able to buy back shares without any problems at all. However, because of Urbans marketing strategy, upcoming dividends and so forth. What they were seeing is that shareholders, that were already holding shares, were buying more instead of selling, and new shareholders were coming in every day. Together they were buying shares up as fast as CMKX could issue them.
The Market Makers believed that eventually the hunger and drive for CMKX shares would die down. After setting into action a plan to short CMKX until the shares became worthless, they also began to send out paid bashers to try to discourage people from buying more shares and to get them to sell. However, shareholders were still buying up shares, even at .0001. Soon afterwards CMKX increased the A/S to 800 billion and issued more shares.
The Market Makers were puzzled that one small company could sell so many shares, and seeing that they weren't going to be able to buy back shares to cover. They decided that their best option would be to short CMKX out of business...
Somehow, Urban Casavant learned what they were doing, and set into action his own plan.
How this will end, is anyone's guess...
However, I see it this way... The market makers are going to have to buy back every share that they have shorted.. The first few billion might not be so difficult and it looks like, from some of the trading that we are seeing, that they may be buying already. However, once the float begins to become more scarce, the PPS is going to start rising. Some shareholders, such as daytraders, will be helping the MM's by selling at between .0005 - .001 PPS. Some will be happy to get .01, and some .05. However, there will be some of us, that will hold out for $1.00 or more, and guess what the MM's will have to pay it or go to prison. IMO
Faith
