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*CMKX*Our Casavant Checkmate*…

Many of us are Pawns in this game of Chess or even in what we know as life. The Pawn is considered your weakest piece for acknowledgment of power as compared to your Knights, Rooks, Bishops, Queen and King. Wisdom is what allows for the true understanding of how often the Pawn could be your strongest piece that puts your opponent in…Checkmate!

I am about to go out in left field on this post. Those that read, understand, and somewhat agree with what I discuss below, come on out in left field with me. For those who don’t understand… I understand, go ahead and stay in the clubhouse. As for the Market Makers (MMs), that have naked shorted CMKX, hope for rain before the fifth inning.

Urban increased the Authorized Shares to 500 billion back in Mar 04 and many had shown panic from fear of not understanding. What I am about to discuss is nothing more than what I think I understood to justify why he had done so mixed with some options of what I would do if I was Urban.

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CMKX
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Re: Sterlings Latest (big) Post.. Your thoughts?
« Reply #1 on: 06/18/2004 at 02:47:11 »

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This could create a new paradigm for all OTC and OTCBB stocks to follow to force the Market Makers (MMs) to conform to a system of just being fair. I think many other CEOs will use Urban and CMKX as an example to establish the direction to combat naked shorting of their stock by the MMs.

Most MMs such as NITE, BSIC, JEFF, etc. have so many thousands of stocks that they are monitoring and trade on a daily basis that CMKX is not yet even on their radars yet, if I had to guess. Eventually once we get on the radar of the MMs, the MMs would soon realize that resistance is futile. That time is nearing in my opinion. The MMs have different levels of awareness that a stock must graduate to obtain growing recognition. We have graduated to the next level.

When Urban increased the AS to 500 billion shares, it caught ALL of the MMs off guard to think of them as your average pink sheet stock according to statistics. This was the best and most powerful move CMKX could have ever done. Previously, the MMs had reason to look at CMKX as one of those 90%+ penny stocks that never succeed in the penny world. Brilliant!!!

Urban increased the AS to 500 billion to first show accountability of the entire share structure for CMKX. Then Urban bought/retired back roughly 480 billion shares since the OS was roughly about 20 billion before the retiring of shares had began according to old SEC filings. Eventually, Urban’s goal is to retire each and every share to only leave what we will call the variable X for an OS. The variable X will be restricted. This could mean that we have no Outstanding Shares (OS) or one that has been carefully orchestrated through share retirement to be very low.

This means that most of us probably have naked shorted shares. The new official share count for CMKX will be whatever Urban reports to have for the recorded transactions for owning, not what we bought.

There is a chance that Urban bout the remaining 20 billion to retire the entire OS and Float. With the thought of not having an OS, this means that we don’t have a denominator to use for establishing fundamental value since the OS is what’s used for such determination.

For now, let’s assume that Urban left at least 1 share to allow for a denominator to simplify the assessment of fundamental value. We will use the variable X for the number 1.

Let’s assume that X will be no lower than 1 until further specified to be considered different at the given times. This means that Urban has retire CMKX shares down to the level of a number known as X. This means that what Urban is creating is a brand new term that I call Infinite Valuation.

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CMKX
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Re: Sterlings Latest (big) Post.. Your thoughts?
« Reply #2 on: 06/18/2004 at 02:47:28 »

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It’s called Infinite Valuation because the thought is that there are no limits as to how high your company could be valuated. Your EPS would equate to whatever you confirm to be your Earned Income of valuation that is given at such time by the company. Please review the formula:

Infinite Valuation = Earned Income ÷ X = EPS (Earnings Per Share)

Understand that X represents a number for the denominator when determining fundamental value as the OS keeps decreasing towards zero, but infinitely never reaches zero. This variable X will always be high enough to always capture the lowest OS before fully retiring in the example that I will be posting later. The thought is that the denominator keeps decreasing infinitely as it approaches zero, but never reaches zero.

Earned Income is considered to be Revenue – Expenses or the “Intrinsic Value” that was made into an actual value. (Within the Intrinsic Value the expenses are already included.) Earned Income would be considered as your net profits from revenues minus expenses. Let’s capture how this would work.

I am guessing that we have so much land full of kimberlite that there is no way we are going to mine all of what we have in our populated kimberlite areas. I am guessing that we will be selling some of that to those who are probably highly interested. Let’s take for an example that Urban releases confirmed valuation of $5 billion in CMKX. This means that because of what I explained above, our Infinite Valuation and EPS would equate to $5 billion per share. This is very powerful.

What’s even more powerful, earlier I mentioned that we use X to show the number of the OS to represent the lowest number to use as a denominator. To fully understand the power of this example, let’s make the assumption that X=1 for the reasons above. Observe…

Earned Income = $5,000,000,000
X = 1

So…
Infinite Valuation = Earned Income ÷ X = EPS
Infinite Valuation = $5,000,000,000 ÷ 1 = EPS
Infinite Valuation = $5,000,000,000 = EPS

This means that Infinite Valuation is equal to $5 billion, which would be equal to the EPS. Yes, this would mean that we would have an EPS of $5 billion per share.

Now back to the importance of retiring all shares except for 1 share. That 1 share could now be forward split to whatever number Urban desires to have for an OS. Now, Urban could pick any number to make this scenario work at this point. Let’s say he uses 5 billion. This would mean that Urban would now do a 5 billion to 1 forward split.

This would give Urban an amount of 5 billion for our OS and we would have to multiply our shares by 5 billion to be given the same CMKX forward split ratio. Since us shareholders are all holding naked shorted shares, this magnifies the naked shorted problems by 5 billion times the amount it was already naked shorted to significantly further compound the problems for the MMs. This would no doubt force an accelerated naked short covering.

With Urban having 5 billion for our new OS, he would simply retire those 5 billion shares by simply returning them back to the Treasury since those shares are restricted shares that had originated from the 1 pre-split share that was restricted, as I had previously mentioned.

This would mean that in essence, we would then be already private because he would have already bought all shares needed and accounted for with taking CMKX private. All he would then have to do is just name his price for the Tender Offer of taking the company private and the MMs would have to cover by his price named by the execution date stated by Urban in the PR. This would be like Urban buying out himself since he would own all of the accountable shares.

Urban could also do as stated above and do a Tender Offer while having 1 share for the OS of $1.00 per share. This means that if he has accountability of all shares minus 1, then all he would be required to legally pay for is that 1 share. The MMs would be responsible for covering with cash the $1 Tender Offer price that Urban had stated at his deemed execution date.

The power of the example above is that Urban could execute the same concept at any number he deems fit to have temporarily as the OS. The same logic would apply to the naming of the Tender Offer. These actions would be arranged and designed to not be at his expense.

Something else to ponder…
Since UCA was previously halted for trading as one of CMKX JV partners on the Canadian Exchange, this leads me to think they are somehow a player. I am thinking that it would make more sense to have UCA and KPG merge to trade on the US stock exchanges versus the Canadian by merging into UCAD. They would then be known as Saskatchewan Diamonds.

After retiring all shares down to 1 share, Urban could do a forward split ratio of 100,000,000 to 1 to have CMKX do a 1 for 1 merger into what might be known as Saskatchewan Diamonds (the Triad of their JV partners - UCAD, UCA, & KPG).

Still, with a merger, why have one company of value when you can two or multiple companies of value. Urban would then issue us a share dividend from Saskatchewan Diamonds too to entice holding to further make things difficult for the MMs to obtain shares/inventory needed to cover. Shareholders would hold to receive the share dividend of Saskatchewan Diamonds.

Urban could issue a double, triple or more dividend of power to further compound the covering. Each would have their story for understanding.

We could see the issuance of spin-off share dividends in new entities such as below:
a. Gold = CMKG
b. Uranium = CMKU
c. Zinc = CIM
d. Platinum = CMKP
e. Silver = CMKS
f. etc.

Another option to consider for making the MMs cover would be to issue a cash dividend such as… “For every 1 share of CMKX you own, you would receive a .01 cent or even .10 cents cash dividend.” Whatever price named would instantly make CMKX to be worth the price named x 2 in value.

Here’s the power behind this. A cash dividend price named at .10 cents would give CMKX instant valuation of .20 cents. This is so because CMKX would hit .10 cents at minimum because that would be the same as assessing valuation for CMKX shareholders. Then once .10 cents is reached, CMKX would still have the remaining .10 cents coming to them to execute the cash dividend by the execution date. That’s a psychological double.

This would equate to a certain amount that Urban would give to award such dividend. This would not be at any to very minimum cost to Urban.

The cover would no doubt have to be forced to make sure each .10 cents increment matches each share according to the amount of shares verified per CUSIP number that the company’s Transfer Agent reports. Still, if Urban verifies accountability of a huge position, then the payout of the dividend would be minimal because it would act as if he was paying out himself.

Another option to consider for making the MMs cover would be to re-issue the CIM dividend with an extension of the old 30 Sep 03 date to be at some date in the future. This would serve three primary purposes:

1. Entice shareholders to hold during any covering to put more pressure on the MMs.
2. The re-issuing of CIM shares would allow for all who own shares now to own CIM.
3. This would help to create a more united front of shareholder support for motivation.

I am sure that Urban wants to retire the entire OS and the float. If and when he has, this means that we are the float. This means that all of our shares are probably naked shorted shares. This means that the MMs have a serious problem. This means that shares recently bought over the past few months are naked shorted shares. This means that shares bought today and in the future are naked shorted shares. This means that the MMs are allowing for this problem to continue escalating to a level where some major rectification is going to have to take place.

This means SEC and NASD interface for resolution will become manifest. Now I really see why Urban had to get the best New York law firm in this field of resolution. This is starting to get very interesting. I’m sure with Glenn having prior SEC law writing experience, he would know exactly how to get this resolved. Many were not sure whether or not if Glenn was there for the defense of CMKX or the support of CMKX for going after the MMs.

All of the above are only some “food for thought” as to how I would consider resolving this issue if I was Urban. They are “theory” until proven to be “facts” by the company.

I believe that prosperity is upon us with CMKX! Check mate! Game Over!

All is well! http://www.sterlingsclass.com/

;-)
Sterling

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[This message has been edited by kevinscott (edited June 23, 2004).]

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cool1sh
Member posted June 23, 2004 08:31
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from IHUB.. good read..

SOME THINGS THAT ARE HAPPENING.

Is there a silver lining in the middle of this murky time frame? Yes.

The company is actually starting to act like a real company. And this must be scaring the shorts far more than anything else right now. We have hired a top tier law firm. We have switched transfer agents. We have shut down our message board. Melvin's IBC appearances have now been yanked. The "Get it while it's hot" self-promotion on the website has been removed. In the past 12 days, despite a sagging stock price, no PRs have been put out to try to prop the price up (the lawyer PR was one paragraph and straight forward, and the message board PR was obviously not intended to promote the company, just to inform investors (albeit in an immature way)). All of this is pretty much contradictory to the way most otc or pinks operate at this juncture. And that must be pretty scary to some shorts. Most otcs or pinks at this point begin an even MORE aggressive promotional push to "combat" everything being thrown at them. To the contrary, things are frustratingly quiet on the long front.

And they should be. The problem with most otcs and pinks is that good lawyers are NOT involved and the CEOs end up doing all the things that the shorts just sit back and LAUGH at. Let me give you a good example. Here's a press release from a company that I suspect is under a short attack. Their stock price reached almost two dollars and got slammed back to 60 cents. So how do they respond? With this press release: http://biz.yahoo.com/prnews/040614/phm018_1.html

Laughable. A self-proclaimed piece of promotional rubbish that actually has the gall to declare themselves the next TASR. How did the shorts react? Oh no!!!!! They let the buying frenzy run the stock from 63 cents to 95 cents on the day of that press release. And they have comfortably shorted it back down to 78 cents today with probably much more to go. Or how about QBID's daily "message hotline" which basically feeds advanced notice of their press releases to the public. All efforts by pennyland CEOs to fight back exactly as the shorts anticipate them to fight back.

My point is that instead of seeing such desperate moves, CMKX has been strangely quiet. They didn't even put out a press release to try to "explain" the press release from UCA/KPG, a move I almost for sure thought Urban would try to squeeze out. Nope. Nothing. Any coincidence that in the middle of this silence is a PR simply stating that the new law firm is beginning its work? I think not. I think we are starting to finally see the wheels of the law firm start to turn. Slowly at first. More rapidly I hope as true progress emerges.

If we're for real, than this is the path I find MOST encouraging. If we were NOT for real, I suspect we'd be seeing some pretty aggressive promotional efforts going on right now in an effort "support the share price" and "increase shareholder value". The fact that we have Edwards Angell in our corner right now is presenting a very unique wrinkle to the naked shorts -- they have likely never faced an otc or pink sheet with actual legal firepower behind them. To compound matters even worse, there are so many "free riders" at this stage (people who are letting their shares ride after taking an initial investment off the table) that those shares are simply not coming loose. Not in enough volume at least to counteract the buying.

I know this is tough and it's almost laughable after we've fallen from .0011 to .0005 but my honest guess is that the shorts are now starting to get reasonably concerned and our game plan is starting to mature behind the scenes. In ten years of penny investing, I've never seen these forces align quite like this. I can't say that I "like" our position since I'd rather us be in the pennies already. But I can say that this is the path I would most likely script out for a small, emerging company that actually has something tangible and real and wants the world to take them seriously.

Good luck to us. There will be many pain threshholds. I think where we are right now is the first among many to test our will.

Z

As always, these are my personal opinions.

Hopefully nobody in here is investing anything but "fun" money that they can afford to gamble with.

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kevinscott
Member posted June 23, 2004 08:34
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JUST REMEMBER -- HOLD ON TO YOUR SHARES TODAY --
Don't let the MM's get them and to cover their shorts

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~,-,-< GatorMan

[This message has been edited by GatorMan to correct spelling errors]