Owner
Post by Franko10 ™ on Mar 4, 2005 17:49:28 GMT -5
Non-Retail Short Covering Complete…<br>
CMKX Shareholders,
I hope everyone has had a chance to digest all of the discussion about the trading suspension today. Many have stated they’re encouraged by the suspension while others are obviously not. I am of the opinion that today’s events were planned to coincide with the completion of the non-retail short covering and that we are at the end of the game. Some of you may agree while others may not and that’s just fine by me. I’m putting my best foot forward in my interpretation/speculation as to what has happened. These are only my opinions so please treat them as such. Let’s get to the meat and potatoes!
As I explained back in December I believe there has been a non-retail short covering taking place between the DTC and it’s member lenders for the Stock Borrow Program. Please read cmkxdiamond.proboards32.com/index.cgi?board=general&action=display&thread=1102455563I for all the background information. I speculated that when this was complete we would have one failure to deliver for each retail share owned (less the legitimate O/S). I also speculated that there was a low O/S and virtually non-existent float (the float is the certificate holders). For the sake of time we will not argue this point. Many wise folks have already covered it both pro and con.
In the original theory I stated that the covering was forced by the SEC. I still believe they have been involved since late last summer when Roger Glenn brilliantly executed the dividends to expose and prove the NSS position. At that time I also discussed that there were two ways out of this for Shorty, a massive short squeeze or a tender offer. I believe one of these will happen when the suspension is lifted and we will never see CMKX unfairly traded again.
I have discussed many times in many posts that the key is to force Shorty to cover. He still has an open contract with you to deliver “real” shares. If he can’t deliver, then he must buy back the NSS from us and delete the position from his books. However, we needed a catalyst such as a filing, cash dividend, or merger to make this happen. Well, I believe we received that catalyst in the form of our filings which were paper submitted to the SEC, otherwise we would have seen them on Edgar. Obviously this is speculation on my part but just think for a minute. The SEC doesn’t want the cat out of the bag as to how bad they’ve screwed up so they ask CMKX to paper file and keep things out of the public eye. By imposing a temporary suspension, the SEC is given the necessary time to get things in order for the final outcome.
I honestly believe that today’s suspension was forced by CMKX. Many people have questioned exactly what RG accomplished during his tenure and I say everything behind the scenes. He took two years worth of information, had it audited, proved the NSS position beyond a reasonable doubt, familiarized himself with CMKX’s entire business, and made sure CMKX was squeaky clean before anything was filed. I believe all paperwork is complete and has been for some time with the exception of the 10K, which I believe, was completed just recently. RG fulfilled his obligations and then everything was handed off to the muscle to make sure it was enforced, thus Iron Bob Maheu. As a side note, don’t be surprised if RG ends up leading our SOX Board of Advisors.
In all honesty I think the SEC is taking a close look at our financials but this suspension is mostly window dressing. The financials were independently audited and should pass with flying colors. I’m sure the SEC has already taken a good look at CMKX due to its affiliation with USCA. They are so closely tied that one really has to be looked at with the other. This suspension was a way of immediately stopping any market being made and any further shorting of CMKX. You might then ask why the SEC let it go on for so long after the dividend operation? Well, a market still needed to be made so that the DTC could run its non-retail covering through the market to straighten out its books. This had to happen if they were as complicit in this whole thing as we think they were. Obviously it gave all of us an incredible buying opportunity even though it compounded the problem for Shorty. Remember, you want to bend the system and force it to live up to its obligations, not break it. Everything has to be orderly and appear legitimate.
This brings us to the resolution to this whole situation. For me it comes down to the two options stated above, a short squeeze or a tender offer. If we resume trading again on March 17th, then you can expect to see a healthy retail short squeeze due to the information in our filing and the pressure exerted by the SEC. Our numbers will speak volumes and we will be trading according to our fair value. If we don’t resume trading on March 17th, then I would expect to see a tender offer for all of our shares and CMKX would completely go away. After the suspension today, I am leaning toward this option. I believe the SEC may never want the public to see a filing from CMKX to confirm all of our suspicions. I also think Shorty will want to take the cheaper way out because a short squeeze of this magnitude could be devastating to him. I stated from day one that we will probably never know what went on behind closed doors. That’s just fine by me as long as I am given a fair price for my shares.
Once all of this is complete we will move forward as a company. I believe CIM will be the entity that all our JV’s are rolled up into and then we will IPO. It will be a clean slate we’re working with to gain the most benefit from core sample results and continued operations. We will sample then mine our diamonds, gold, and other stuffium – the whole reason we bought into this in the first place. I also think there will be some way for our late arrivals to take part in CIM. There may not be another dividend, but possibly a discount on the IPO. Some may complain and say this isn’t fair. Sorry, but it’s a reward for those who have been here for the longest. Besides, you will still be nicely compensated for your CMKX shares!
Well folks, I thank you for tuning in this evening. Your opinions are welcome and I look forward to constructive conversation. Also, I plan on seeing you all in two weeks, I will be the tall young man standing next to the pot of gold drinking a Guinness on St. Patrick’s Day. Have a great weekend…<br>
lowriderbill
CMKX Shareholders,
I hope everyone has had a chance to digest all of the discussion about the trading suspension today. Many have stated they’re encouraged by the suspension while others are obviously not. I am of the opinion that today’s events were planned to coincide with the completion of the non-retail short covering and that we are at the end of the game. Some of you may agree while others may not and that’s just fine by me. I’m putting my best foot forward in my interpretation/speculation as to what has happened. These are only my opinions so please treat them as such. Let’s get to the meat and potatoes!
As I explained back in December I believe there has been a non-retail short covering taking place between the DTC and it’s member lenders for the Stock Borrow Program. Please read cmkxdiamond.proboards32.com/index.cgi?board=general&action=display&thread=1102455563I for all the background information. I speculated that when this was complete we would have one failure to deliver for each retail share owned (less the legitimate O/S). I also speculated that there was a low O/S and virtually non-existent float (the float is the certificate holders). For the sake of time we will not argue this point. Many wise folks have already covered it both pro and con.
In the original theory I stated that the covering was forced by the SEC. I still believe they have been involved since late last summer when Roger Glenn brilliantly executed the dividends to expose and prove the NSS position. At that time I also discussed that there were two ways out of this for Shorty, a massive short squeeze or a tender offer. I believe one of these will happen when the suspension is lifted and we will never see CMKX unfairly traded again.
I have discussed many times in many posts that the key is to force Shorty to cover. He still has an open contract with you to deliver “real” shares. If he can’t deliver, then he must buy back the NSS from us and delete the position from his books. However, we needed a catalyst such as a filing, cash dividend, or merger to make this happen. Well, I believe we received that catalyst in the form of our filings which were paper submitted to the SEC, otherwise we would have seen them on Edgar. Obviously this is speculation on my part but just think for a minute. The SEC doesn’t want the cat out of the bag as to how bad they’ve screwed up so they ask CMKX to paper file and keep things out of the public eye. By imposing a temporary suspension, the SEC is given the necessary time to get things in order for the final outcome.
I honestly believe that today’s suspension was forced by CMKX. Many people have questioned exactly what RG accomplished during his tenure and I say everything behind the scenes. He took two years worth of information, had it audited, proved the NSS position beyond a reasonable doubt, familiarized himself with CMKX’s entire business, and made sure CMKX was squeaky clean before anything was filed. I believe all paperwork is complete and has been for some time with the exception of the 10K, which I believe, was completed just recently. RG fulfilled his obligations and then everything was handed off to the muscle to make sure it was enforced, thus Iron Bob Maheu. As a side note, don’t be surprised if RG ends up leading our SOX Board of Advisors.
In all honesty I think the SEC is taking a close look at our financials but this suspension is mostly window dressing. The financials were independently audited and should pass with flying colors. I’m sure the SEC has already taken a good look at CMKX due to its affiliation with USCA. They are so closely tied that one really has to be looked at with the other. This suspension was a way of immediately stopping any market being made and any further shorting of CMKX. You might then ask why the SEC let it go on for so long after the dividend operation? Well, a market still needed to be made so that the DTC could run its non-retail covering through the market to straighten out its books. This had to happen if they were as complicit in this whole thing as we think they were. Obviously it gave all of us an incredible buying opportunity even though it compounded the problem for Shorty. Remember, you want to bend the system and force it to live up to its obligations, not break it. Everything has to be orderly and appear legitimate.
This brings us to the resolution to this whole situation. For me it comes down to the two options stated above, a short squeeze or a tender offer. If we resume trading again on March 17th, then you can expect to see a healthy retail short squeeze due to the information in our filing and the pressure exerted by the SEC. Our numbers will speak volumes and we will be trading according to our fair value. If we don’t resume trading on March 17th, then I would expect to see a tender offer for all of our shares and CMKX would completely go away. After the suspension today, I am leaning toward this option. I believe the SEC may never want the public to see a filing from CMKX to confirm all of our suspicions. I also think Shorty will want to take the cheaper way out because a short squeeze of this magnitude could be devastating to him. I stated from day one that we will probably never know what went on behind closed doors. That’s just fine by me as long as I am given a fair price for my shares.
Once all of this is complete we will move forward as a company. I believe CIM will be the entity that all our JV’s are rolled up into and then we will IPO. It will be a clean slate we’re working with to gain the most benefit from core sample results and continued operations. We will sample then mine our diamonds, gold, and other stuffium – the whole reason we bought into this in the first place. I also think there will be some way for our late arrivals to take part in CIM. There may not be another dividend, but possibly a discount on the IPO. Some may complain and say this isn’t fair. Sorry, but it’s a reward for those who have been here for the longest. Besides, you will still be nicely compensated for your CMKX shares!
Well folks, I thank you for tuning in this evening. Your opinions are welcome and I look forward to constructive conversation. Also, I plan on seeing you all in two weeks, I will be the tall young man standing next to the pot of gold drinking a Guinness on St. Patrick’s Day. Have a great weekend…<br>
lowriderbill
