Interesting CMKX post from Dimitel.com

[Franko10 ™]

Brought to you By ksbradley on Millionaire Board

Now, the best way to determine the existence of a short would be to determine the maximum number of tradable shares or to determine the worst possible float.

To accurately determine the worst possible size of the float we need to look at what was in the suspension PR put out by the SEC . This excerpt revealing possible wrong doings takes us back to 2003. ? the SEC was concerned that CMKX may have unjustifiably relied on a Form S-8, filed in May 2003, to issue unrestricted securities and that CMKX and/or certain of its stockholders may have unjustifiably relied on Rule 144(k) of the 33 Act in conducting an unlawful distribution of its securities that failed to comply with the resale restrictions of Rules 144 and 145 of the Securities Act? You notice that they may have unlawfully made some restricted shares tradable by unlawful means. The number of shares here being discussed is the one variable that will influence the outcome, as no one can determine this number of shares being discussed. How ever, it is proof that there are laws governing the amount of shares being issued for trading by Pink Sheets Stocks. This fact is very important.

Prior to this filing in May we saw PR releases stating shares being retired by CMKX. With these share retirements at this time gave us an O/S of 20 billion shares, some restricted, some unrestricted. With the supposed unqualified sale of restricted shares I will put all 20 billion shares into the float as I would rather evaluate CMKX?s float at the highest possible number.

Now from this point and time we must add to this 20 billion shares, the maximum number of shares that CMKX could legally issue in tradable form over the last 2 years. By doing this we can come up with the worst possible number of shares in CMKX?s float.

Here we have Rule 504 regarding how many shares a non reporting company may issue and how they may issue them. CMKX was consider a no reporting company and would have had to follow these rules of law. www.sec.gov/answers/rule504.htm

Rule 504 of Regulation D
Rule 504 of Regulation D provides an exemption from the registration requirements of the federal securities laws for some companies when they offer and sell up to $1,000,000 of their securities in any 12-month period.
A company can use this exemption so long as it is not a blank check company and does not have to file reports under the Securities Exchange Act of 1934. Also, the exemption generally does not allow companies to solicit or advertise their securities to the public, and purchasers receive "restricted" securities, meaning that they may not sell the securities without registration or an applicable exemption.
Rule 504 does allow companies to make a public offering of freely tradable securities but only if one of the following circumstances is met:
The company registers the offering exclusively in one or more states that require a publicly filed registration statement and delivery of a substantive disclosure document to investors;
A company registers and sells the offering in a state that requires registration and disclosure delivery and also sells in a state without those requirements, so long as the company delivers the disclosure documents required by the state where the company registered the offering to all purchasers (including those in the state that has no such requirements); or
The company sells exclusively according to state law exemptions that permit general solicitation and advertising, so long as the company sells only to "accredited investors."
Even if a company makes a private sale where there are no specific disclosure delivery requirements, a company should take care to provide sufficient information to investors to avoid violating the antifraud provisions of the securities laws. This means that any information a company provides to investors must be free from false or misleading statements. Similarly, a company should not exclude any information if the omission makes what is provided to investors false or misleading.
While companies using the Rule 504 exemption do not have to register their securities and usually do not have to file reports with the SEC, they must file what is known as a "Form D" after they first sell their securities. Form D is a brief notice that includes the names and addresses of the company?s owners and stock promoters, but contains little other information about the company.

From this CMKX would be allowed to issue up to 1 million dollars worth of unrestricted shares per year of the 2 year period, previously stated. For our float numbers I will figure CMKX did issue the maximum amount to raise 2 million dollars. I will also use a very safe figure that they only received .00005 / share, which would be 40 billion shares.

We will now add these 40 billion shares to our 20 billion shares and get a maximum possible float of 60 billion shares.

I have looked for other legal ways for CMKX to have been able to legally issue more shares legally into the float and have not been able to find any. I also note that the SEC has not charged them with nor claim that they have illegally issued any shares into the float, other than in 2003, which we earlier discussed. This then does give us an accurate worst estimate of 60 billion tradable shares, unless some one could kindly correct me and show me a law that would allow CMKX to issue more tradable shares into the float without having to file with the SEC as no filings were ever made to issue any shares.

This shockingly low number, does show that there must be a very high number of restricted shares. If Nevada Minerals was holding 75 billion shares, we can see it would be very possible for 640 billion shares to be in restricted form being held in certificates or in street name, by possible entities such as USCA, SGGM, GEMM and a host of other mining companies including CIM and the Cassavant families.

Now look at the trading history of CMKX. I personally believe it shows trading patterns that would indicate a huge short position being on CMKX if the float was only 60 billion shares.

Again I will update this 60 billion shares with any additional shares that can be added to it. Those shares that are addable to it must be able to be legally added or you need to show where CMKX violated a law to issue them.

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