Finding #3
The DTC/CEDE & CO will confirm that according to their records, some number of CMKX shares “more” than the 407,321,106,308 shares have transacted through the DTC/CEDE & CO.
Under Finding #3, if the DTC confirms a number “more” than the 407,321,106,308 shares that transacted through them, this means there was a surplus of CMKX shares that were allowed to be bought. These shares “should not have been allowed” to be sold because the “Legit Float” was zero. There was no inventory of CMKX shares available for the public to buy. That surplus is considered the “Illegit Float” and are naked shorted shares.
Example: If it’s confirmed that the DTC/CEDE & CO had 779,625,779,625 shares of CMKX that transacted through them, then this would mean that there are 372,304,673,317 shares that were allowed to be purchased as naked shorted shares. This would mean that there “is” an official naked short position that exists within CMKX. This is the official confirmation that might be in the mix to be proven from the dividend distributions.
The GEMM dividends could be a player, but I will skip sharing some thoughts on those options to keep this post from being lengthier than it already is. We’ll focus on the USCA and CIM dividends.
The numbers used to reflect the amount of shares that transacted through the DTC/CEDE & CO should match the amount shares of CMKX shown to have received the USCA and CIM shares dividends. They don’t, as a huge disparity exists. This is where the naked short should be revealed in my opinion. Let’s figure this out.
Once again, let’s familiarize ourselves with the updated distribution multiples for USCA and CIM to examine the huge disparity in what now reveals the amount of shares that have been naked shorted. Keep in mind, this was verified and completed through coordination from Roger Glenn coordinating with the DTC, NASD Officials, and the Market Data Integrity section within the OTC Bulletin Board.
USCA Confirmed Distribution Multiple = .00000962
CIM Confirmed Distribution Multiple = .0256
The USCA Dividend Shares to CMKX = 7,500,000
The CIM Dividend Shares to CMKX = 40,000,000,000
The USCA Calculated OS for CMKX/or CMKX shares who received USCA Dividend
7,500,000 ÷ .00000962 = 779,625,779,625
The CIM Calculated OS for CMKX/or CMKX shares who received CIM Dividend
40,000,000,000 ÷ .0256 = 1,562,500,000,000
Key Stats
Confirmed CMKX Shares DTC Transacted = 407,321,106,308
Currently Reported CMKX OS = 703,518,875,000
USCA Dividend Confirmed CMKX OS/Float = 779,625,779,625
CIM Dividend Confirmed CMKX OS/Float = 1,562,500,000,000
The key thing about those numbers that were confirmed to be the OS/Float for CMKX through its own dividend given to all public shareholders of CMKX is that these were all confirmed shares that had transacted through the DTC from the MMs that were “electronically” placed into shareholder’s brokerage accounts. From the USCA dividend, this means that the disparity exists below:
779,625,779,625 - 407,321,106,308 = 372,304,673,317 Naked Short Shares (NSS)
This means that when the DTC go back to verify their records for seeing how many shares they transacted to be placed into stockholders brokerage accounts, the number will show an extra 372,304,673,317 NSS that were given to them by the MMs to place into our brokerage accounts. The DTC should see that there is a huge disparity that exists and that the MMs could have done so under the intentions for their self gain or a simple error.
From the CIM dividend, this means that the disparity exists below:
1,562,500,000,000 - 407,321,106,308 = 1,155,178,893,692 Naked Short Shares (NSS)
This means that the DTC would see a disparity of 1,155,178,893,692 NSS. This is over 1 trillions shares! Heck! Ok, let me calm down. Let’s word this thought another way. This would be like the DTC seeing an officially Form 8-K filed by CMKX with the SEC stating that 407,321,106,308 was the maximum amount of CMKX shares that the MMs should have been given to them to put into our brokerage accounts from receipt via DTC/CEDE & CO. The DTC would see that the trust they had with the MMs would have been significantly violated by them sending through an extra fictitiously created 1,155,178,893,692 naked short shares (NNS).
Let’s look at this even in another way. Let’s say that Urban only paid out 20 Billion shares of CIM and not 40 Billion shares of CIM. Then divide 1,155,178,893,692 by 2 and you still come up with 577,589,446,846 naked short shares.
This is when the DTC/CEDE & CO would no doubt feel the pains of CMKX and what they had no idea that have been happening in the market for years as I’m sure some might have suspected. This is when they will realize that a “powerful” resolution would be in order for full compensation to give back to CMKX what was taken away from CMKX and its shareholders. This is an option that many have chosen to risk by awaiting to see if such is officially justified.
Urban and CMKX has put the DTC in a position to where the DTC will think that they revealed to everyone the disparity of CMKX shares they transacted that were given to them by the MMs. This way, they will have a feeling of ownership for resolving the disparity. If CMKX automatically comes at the DTC in a manner of pointing fingers at the DTC placing blame on them, they would have a feeling of punishing CMKX. They would feel as though CMKX would be challenging and questioning their integrity and the way thy do business. Egos would get involved. Since the DTC is a federal regulatory body, the odds probably would not be in favor of CMKX winning this war with the DTC unconvinced. This is why Urban and CMKX will bring “everyone” to a happy understanding of how things had gotten broke and what is expected of them to rectify the situation.
Ok, forget about the above thoughts and let’s now look into the next door for a different type of consideration on how to view the recent CMKX 8-K that was filed. This is only another twist as more food for thought.
Door #2
Again, the key topic of discussion evolved around the piece indicated below:
("There are 703,518,875,000 shares of common stock issued and outstanding to approximately 2,032 stockholders of record (excluding shares held in "street name")
… "Street name" refers to shares held in a person's/entity's brokerage or other trading account. The majority of these shares are typically shown on stockholder lists as being held in CEDE & CO. The Company is not aware of how many stockholders have shares held in "street name", but the Company's stockholder list as of March 4, 2005 had 407,321,106,308 shares held in CEDE & CO.
Under this door of thinking, you must enter under the perspective of thinking that in the first piece above in bold, CMKX meant for the word "shares" to be referring to exactly what they said, “shares” and not shares held by "stockholders." First, the word "excluding" is key to let you know to don't include those shares held in "street name" with that total figure. PERIOD
You have to think that “if” CMKX wanted you to include those shares held in “street name,” then they would have “not” told us to exclude “them.” The word “them” is referring to those 407,321,106,308 shares that are part of the definition of how they told us to interpret shares held in “Street name.”<br>
One could argue that throughout the PR and filing that since they indicated where they wanted the word shares to be reflected throughout, if the word “shares” was to have been changed or interpreted as something different, they would have changed it as an opportunity to do so when they filed the 8-K. They didn’t so now it’s left up to interpretation again.
One could also argue that if it was as cut and dry as some seem to think, then why didn’t they just not insert that piece in parenthesis and delete everything afterwards? That would not have given us anything to decipher for potentially existing as a naked short or any other interpretations.
That means that they are saying that they can account for 703,518,875,000 shares through certificate form. These numbers do include the “Legit Float” as I defined earlier as the first set of shares in “street name” too. These numbers don't include the company’s definition of "street name" shares that were held by the CEDE&CO (DTC) which by their count was 407,321,106,308 shares and in this case is the initial portion of the indicated “Illegit Float” that makes up the second set of shares held in “street name.”<br>
This means that 407,321,106,308 shares held in CEDE & CO are naked shorted shares and that there could be more that they have no way accounting for. All of this is the “Imperfect World” that I mentioned about earlier.
With a filing allowed to be released through the SEC, this is powerful and is no doubt considered as fact. It’s fair to anticipate that CMKX will resume trading as stated by the SEC on 17 Mar 05. It’s fair to say that the 8-K recently filed does not confirm that CMKX has been naked shorted. Personally, and this is only my opinion, I think that CMKX have been naked shorted, but it must be officially confirmed by the DTC stating that they transacted more than 407,321,106,308 shares of CMKX to the brokerage accounts of us shareholders.
The two options I discussed above are the main two I think are primary for understanding as we await a resolution. I understand and see the rationale behind them both. Personally, I like the thoughts behind Door #1 the best, but there are some who will adamantly believe in the thoughts behind Door #2.
So, when people say that there is or is not a naked short in CMKX, clearly it should be seen that it’s up to the DTC/CEDE & CO to confirm although we should respect each others opinions and beliefs. Urban has placed the ball in the court of the DTC/CEDE &CO. So now, we continue wait!
All is well!
www.sterlingsclass.com/;-)
Sterling
- - - - -
Owner
