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![]() CMKX .0001 good holding stock get in while its low (Page 36)
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| Author | Topic: CMKX .0001 good holding stock get in while its low |
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Booty Quest Member |
I think someone should start a new thread just for recent PRs and noteworthy posts for any new people interested in CMKX. 30+ pages often overwhelms people from even looking inside. And keep this one too, for more informal discussions. Anyone up for it? IP: Logged |
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Gobstomper X Member |
Well giving dissenting opinions on CMKX is proving pointless, LMAO! IP: Logged |
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will Member |
Pretty impressive post by that attorney. It doesn't appear CMKX has hired, "Dewey, Cheetem, & Howe", either. Looks as if they are coming out of the shade, and trying to get right with Jesus for some reason. Wonder how messy getting them to become legit is going to be. IP: Logged |
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Upside Member |
From the firms website:
Private Equity & Venture Capital Securities Industry Experience Education Florida State University Bar Admissions New York
Roger was involved in the $600 million acquisition by a major telecom company of corporations and limited liability companies holding FCC licenses. Recent Speaking Engagements and Publications The Going Public Sourcebook,co-author, a guide to the initial public offering process and ongoing reporting and other compliance obligations of a public company published by RR Donnelley Financial. Before Edwards & Angell After college, Roger practiced as a Certified Public Accountant on the audit staff of Deloitte & Touche in Miami. He began his legal career with the Securities and Exchange Commission, where he conducted investigations for the enforcement division.
Roger is an enthusiastic golfer and tennis player. IP: Logged |
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Upside Member |
Here's a link to what appears to be his manifesto: http://www.rrdfin.com/download/services/pub_pdf_html_files/Corporate_Responsibilities.pdf IP: Logged |
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Bialystock Member |
Here's the follow-up repost to that first lawyer's opinion that Debi reposted. Here he gives his opinion on their choice of law firm, as he promised. Sounds knowledgeable. Thanks, Debi. _____ Posted by: zeninvestor32 Date:6/5/2004 12:40:27 AM A LAWYER'S VIEW ON THIS LATEST PR. IP: Logged |
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ali Member |
CMKX will rock the world... CMKX will be the stock of the month @ stock prowler .com (one word) Go CMKX [This message has been edited by ali (edited June 05, 2004).] IP: Logged |
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STAR GAZER Member |
Diana, and anyone else that are on the fence about holding on to their shares or selling some or all at these prices. I was unsure if I should sell at least some shares, but now that Casavant has retained the major law firm of Edwards & Angell the question is answered. This is BEYOND HUGH. They don't do business with little people and it costs BIG TIME to retain them. They will go after the naked short sellers, they will make sure that everything is in order for the company to move forward, etc. This is even bigger than if they had announced that they had found diamonds. I'm so impressed that I cancelled my order to sell at $1.00 There are only a few stocks in a life time that can take you to the stars. Years ago I had a chance to buy Aber diamond stock for $.25 which is now it the $50 range. I'm not going to make that mistake again and so I'm staying with this stock. IP: Logged |
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ali Member |
Good post from CMKX board The ideas that some may have had about a scam are OUT of the PICTURE! If a scam is not out of the picture for some then they need to have the rest of the lobotomy performed and get it over with! Some are still worried about the MM’s! I believe the MM's already know what they have to do! They have to buy retail and fill the naked shorts! They can only do this as people sell! So DON’T SELL! If assumptions are right then there is NO FLOAT out there at all! Especially no float at the rate of 12-20 billion shares per day! I would be surprised if CMKX doesn’t already have the SEC watching this trading! Could be one reason way Urban chose a NY Law Firm is because MM’s from the U.S. are in on it and therefore the need for the NY Law Firm to be involved! In Canada evidently it is lawful to naked short an American stock so no laws would be broken there, but the U.S. is different. One of the reasons for a stall over the last 4 to 6 weeks could have been Urban and others gathering evidence! Too, a NY Law firm would take an open and shut case for CMKX against the MM’s providing they determined the rules of engagement and enough evidence is provided to convince them of victory! The only shares that have been available are the ones the share holders and Urban own! If no one sells their shares the MM's have to raise their offer/bid on what we have until it is reasonable enough for some to sell! Then the MM's will not resale that share they have to use it to cover a naked short they owe. The whole point is to HOLD! If no shares are available for them to cover the MM's will have to push the price up into the pennies and above until they can buy enough to cover! The ones holding are wondering who's selling! The ones selling are hoping others will sell so they can get back in! There are billions of shares being held by investors like us that are not being traded so one has to wonder if the MM's are still trying to Naked Short this stock, hoping against hope! With 12 - 17 billion shares being traded daily either investors are selling on their buy line or some are taking a loss! Which causes us to ask the obvious question, if so WHY? The information points that institutional/MM’s are the one’s doing the majority of the buying. The MM's are beyond playing hardball, they are trying to create a bigger gap than what is currently in play! They need at least a 2 point gap before they can make any serious ground on this thing! In attempting to establish that gap the MM’s have been over selling or naked selling at .0003 and .0004 and have not been able to get the buy back at .0002 where they want it! They have already accepted that .0001 is history and are beginning to realize that .0002 is history as well and more than likely .0003 is gone! They are in need of shares but there desire to win has them shorting the stock more and more creating even a greater deficit than before! In a time when investors have been busted by corrupt company’s, individuals bankrupted, losing all of their savings and retirement, because of bogus company’s and Corporate No Goods! You can fill in the blanks with what would happen to the PPS! Just my opinion and I ask that you treat it as such! Dr.D IP: Logged |
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Az...Cats Member |
I agree 100% DON'T SELL keep those shares. Think big guys! IP: Logged |
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SmokingUSA Member |
How am I going to get to buy LOW if you guys don't SELL??? Actually I was wondering if this is the same stock that Kevin Bailey used to give Ric Picks a hard time about. Just think if you would of just kept accumulating this one since back then. WOW!!!!!!!!!!!! IP: Logged |
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ali Member |
Incase any1 missed it..Melvin and Sterling on IBC Radio Melvin on IBC Radio 6/4/04 Melvin on IBC Radio 6/1/04 http://yazzi.com/cmkx/melvin2.htm Melvin on IBC Radio 5/28/04 http://yazzi.com/cmkx/melvin.htm Sterling on IBC Radio http://yazzi.com/cmkx/sterling.htm IP: Logged |
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ali Member |
Monday Big day !CMKX board Let's start with the usual you all know me. In my eyes we did closed at 0005 IP: Logged |
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Money_Penny Member |
Long time lurker, first time poster. I bought 1/4 million shares CMKX for my daughter just to bring her portfolio even with my son's, but after watching this thread carefully for the last 2 weeks, I am extremely excited to jump into this stock myself. I'm just starting out and I don't have much cash to spend, but I want to get at least 1,000,000 shares on Monday. Problems is, LowTrades just gave me an account # Friday night, and I will wire today (saturday) but I don't know when the funds will be in the account available for trading. Anyway, where should I set the buy limit on Monday morning? Great thread guys, I am glad the naysayer's posts have vanished an now it's just pure excitement and adrenaline over this stock exploding (like Mount St. Helens, LOL). Kai IP: Logged |
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cool1sh Member |
Have a nice weekend guys!! (Can't wait for Monday) Go CMKX..GO QBID [This message has been edited by cool1sh (edited June 05, 2004).] IP: Logged |
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tic_toc Member |
got the paper saying the right amount 600 USD 331 GBP thanks for the concern debi, it did have me a bit worried for a time. ... seems a lot of people have rethought their strategies with that last press release. lol, me too. I was gonna try for the free share thing to cover what i paid, but that news looks promising, very promising indeed when weighing it up in the longterm. only just started with his penny thing couple weeks back and this forum is great. my portfolio is 70% up from when it was started mid may, mainly down too this stock, but all the others are green. I've gotta say thanks to every one because i'm learning some great things here. but this cmkx thing...I've bought into this on a dream really. i just want to pay off some debts and be able to do my music long term.i'll tell you all something if this blows, watching it unfold here is one of the strangest and most amazing things i've witnessed. good luck to all! 8)
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VNGNTN1 Member |
DEBI / UPSIDE ABSOLUTELY ON THE MONEY. Two great PR and logical followup. Can't wait to see the Annual Report tha will flow from this. VAN IP: Logged |
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Bam Bam 17 Member |
By; Sterling http://www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=13494 Varok is well respected throughout the investing community. I like his thoughts, but I don’t like his thoughts about a 1 to 1,000 reverse split at .003 cent(s). I am sure that a reverse split will not be needed to meet the $3.00+ per share minimum bid requirement for the AMEX. Varok mentioned a 1 to 1,000 reverse split at .003 cent(s), but many investors were told recently by Urban we would either not have a reverse split or he would consider one only after we are trading at .50+ cents with implications of going to a major exchange/market. We are worth .50 cents in value alone right now! (OK, in my opinion.) Why would Urban do a reverse split before giving CMKX a fair opportunity to run to see if it will get there on its own merit? Especially at .003 cent(s) one will not be considered. We have too much good news coming that it would not surprise me to see .50 cents as the new low side for CMKX shares. We should blow right past .003 cent(s) next week alone just by the PRs we've received this past week. It's good that we have the weekend for investors to get the word out even more and to let the power of these PRs set in and marinate on the minds of investors. I understand Urban's reasoning for not doing a reverse split and to only consider doing one at .50 cents to get us to a higher exchange. If the Market Makers cover the 1 trillion shares short like they suppose too, Urban agrees that we should be well above the AMEX requirement I’m sure. A reverse split at .003 would give us a 1 to 1,000 ratio to meet the AMEX $3.00 bid requirement. A reverse split at .50 cents would give us a 1 to 6 ratio to meet the AMEX $3.00 bid requirement. That is a huge difference from what Varok is saying. Varok is well respected and his thoughts are very conservative in my opinion, but should be considered by all. To make such statements though is like saying that he believes that CMKX will only get to .003 cent(s) to maximize its price before executing a reverse split. I strongly disagree. This again is extremely conservative. People will soon see that getting in at .003 cent(s) is a bargain and will be a has been. It’s ok to agree to disagree. Urban knows that he would lose many investors by announcing a reverse split and many would sell to reduce the amount of investors into CMKX which could hinder the requirement for having a certain amount of investors for going to any of the major exchanges. If not, then we will go private as he has stated to investors to. What I see Urban doing is not doing a reverse split because I believe he was sincere in what he personally told investors about not doing one. By “no reverse split” coming from his words is how he attracted many many investors. Many would feel betrayed. Urban is wise and doesn’t want to make investors feel that CMKX is just your average pink sheet stock. Urban will make the effort to allow for the covering to get us to the market requirements from which he is trying to obtain. I see Urban forcing the MMs into a corner with giving them only two choices for covering. They will either cover to get us well above the requirement for us to enter a major exchange or he will take the company private. I'll explain that later. The PRs this past week were like dropping the match on the fuse. I am sure that Urban sees that it would be very unwise to kill the current and upcoming momentum with a reverse split. Urban has already proven to me that he is a genius with a very caring heart. I am convinced that if these are thoughts that I see, I’m sure that he is aware of these thoughts too. All is well! http://www.sterlingsclass.com/ ;-) IP: Logged |
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rickpic Member |
quote: One and the same! IP: Logged |
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joeyisthebest Member |
Hi to all CMKXers I decided that now would be a great time to tell everyone what I know. I have watched the single share transactions of CMKX for the past month. I noticed that trades were going through wildly at 9 million shares. I counted them up one day they had over 100 transactions. that would be 900 million a day alone. now I believe that this was done for months. I would say three months being the least. That means that 81 billion shares were traded in three months! I am very sure now that this is shorted to shi@t and will be seeing a huge increase in PPS very soon monday will be the beging of the end of .000whatever and start of .001something congratulations to all who have been in I got 2.1 million since FEB hope we are all millionairs. IP: Logged |
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joeyisthebest Member |
sorry but I forgot to tell everyone the most important thing. if no shares were put out Feb had 37 billion O/S from what I hear that means that 81-37=44 billion extra just from the 9 million share trades and I don't think anyone would sell at .0001 because that is where most of us bought in at. good luck to all IP: Logged |
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WWJD-thru-me Member |
Ali-Great Posts-Thanks!!!!! I am going to post something from another board that I think is right on. I have rethought my original plan to sell 2 M shares at about .0015 to recover investment cost plus a 10-15% profit and keep 10 Million long. This has so much potential that if they are still selling on Monday under .001 I am still buying. IMO-DD-IMO-Debi - I am not trying to pump but I am starting to look for a good tax attorney to hep me with the profits and be able to maximize gifts to charities and family members. --------------------------------------------- Here is the post: I have been telling people since May 5th, and believe me I got a lot of people in this stock! That you need to buy and hold and put a GTC at .05 or higher so you don't lose your shares for nothing if a big pr comes out! Now with that being said. I told my friends and trading group that when we get a pr telling us the new O/S share float, and when we get a pr about the core sample results then and then only can we start thinking about a (possible) sell strategy. I for one can tell you if the O/S share count is from 5-20 billion shares and the core sample result pr states we have found many macrodiamonds, I will (not) be selling for pennies! Some newbies to this stock who are hearing about CMKX for the 1st time really have no clue how huge these last couple of prs are! They are telling us that they are going to the Larger Markets AMEX, Dow, and Nasdaq. One of those 3 is coming up for CMKX. Don't be suprised if Urban Casavant is on CNBC sometime this year, about owning millions of acres of mineral claims on the largest known kimberlite find in the World! I am dead serious about my next statement, and a lot of experienced traders will disagree with me on this, Do not sell part of your positition to lock up your initial investment! not at these levels maybe at .005 or higher but not down here, you will lose major gains,afterall if you really believe in CMKX you shouldn't even think about selling a portion of your shares down at these low prices. Also I'd like to point out don't try to sit on the bid at .0004 and expect to get filled on Monday, If you have a lot of cash and can afford to sit on the bid and buy at the ask sure do that! But If I wasn't in yet I'd be buying at .0005 first thing Monday morning because the ask will be .0005 that I guarantee! --------------------------------------------- Debi again-Every time I saw NITE and JEFF with their bid and ask all I could think of is they are whistling in the dark. If they can bail out of this mess for $300 Million they will be getting off cheap. Hold onto to your Golden Tickets until the Second Act or you may miss the main event. IMO-Debi IP: Logged |
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VNGNTN1 Member |
REMEMBER WHEN This has been a long running problem. Last year when stock was split 2:1 and again when a 1:1 spinoff. This was probably(in retrospect) the first & second shot in the war. First those diviends may have been with the knowledge of some value yet unstated and remember you had to prove (by certificate) to get the dividend. I may be wrong,but with 4 times the qty of shares from this activity last September it probably created a 400% problem for the MM's also, a hole they dug and now can"t crawl out of. Also there was a rumor of .01 per share. this would also pressure additional buys forcing additional shorts if paid. Maybe a strategy all of us could do is buy a modest amount more at a higher price say .00007.(help UC out) VAN IP: Logged |
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sneaker68 Member |
OK, gurus...I'm in 1000000 "strong" right now and would like to add. Your opinions to us newbies on what a good limit order would be for Monday? I'd like to add my match to the fire under the MMs! ![]() IP: Logged |
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cool1sh Member |
Hello people.. Thank you all for your comments. What do you think is going to happen on Monday? Anybody buying? I want to but it'll be like breaking one of those rules (don't fall in love with a stock) ![]() IP: Logged |
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cool1sh Member |
Sneaker.. I think it will gap up to .0005 (at least) Monday AM. Place a buy order for 6 or 7, you will get it filled at 0005 if it doesn't run too fast. I would like to see a FAST run (like we had for QBID). I guess it will not happen that easily with this gigantic O/S ??
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VNGNTN1 Member |
HEY COOL How do you know if your'e in love or making a business decision? Time to get that pre_nup VAN IP: Logged |
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WWJD-thru-me Member |
Tic Toc- Glad to hear your account got straightened out and you have your shares cheap!!!!! Congratulations-I hope you don't sell too soon. I think this is the perfect storm and I am expecting big things. I expect it to hit a penny soon and it is very tempting to sell for a quick $120,000.00. But I don't think a company hires the caliber of this law firm to stay a penny stock. I do think something big is happening. The other mining companies who own a percentage of our claims haven't made a peep about the results good or bad. I take this as good news. If you look at the big picture of what we know. Three million acres of mineral rights in the biggest and best kimberlite district in the world. Where the pipes are unique in that they have not been disturbed by glacier activity and mining is cheaper because of this. We know the stock is shorted. Anyone who doubts this should get another job. We know UC knows the share count and after the previous name changes and dividends has a good idea of how short this is. I can name 5-10 investors who have over 2 billion between them. Read the Casavant Mining Message board and you will see quite a few with 100 M shares. We have a few here with 50+M shares and at least 1 with 100 M. Willy W disclosed he has 723 Million shares. You get the idea. This is shorted to high heavens. The lawyer is in NY and was with the SEC. The puzzle is coming together piece by piece. I am very optimistic about the price in the near future. I hope everyone does well with this. I know everyone needs to make their own decisions based on DD and their risk tolerance. I have been blessed with a huge tolerance for risk. If you own shares take the time to dig a little and see if you think selling at .01 makes sense in light of what has been revealed so far. It is very tempting to take the immediate cash, but if the share count and diamonds are unknown at that time you may be selling way to cheaply and find out later you gave away a fortune. IMO-DD-GLTA-Debi IP: Logged |
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cool1sh Member |
![]() I did break that rule with QBID. I am not one of those people who got in .0001, I got in at 0015. But I bought most of my shares at .0044 level. So far not bad.. Debi/Van,
quote: [This message has been edited by cool1sh (edited June 05, 2004).] IP: Logged |
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cool1sh Member |
From iHub: http://www.investorshub.com/boards/read_msg.asp?message_id=3255223 Posted by: zeninvestor32 A LAWYER'S VIEW ON THIS LATEST PR. First things first, let me say that I will be buying the living nuts out of this stock on Monday. Ok, now that you know I'm slightly biased, here are my thoughts. All are my OPINION and as a lawyer I'll add thirty other disclaimers as to doing your own d**n due diligence. LOL Ok, bottom line is that this is REALLY d**n impressive. This firm is ranked #133 based on revenue. Among counsel for debt underwriting, they rank number 10. And if you do a little research into their background and their partners, you will discover that they are one of the absolute LEADERS in dealing with private equity funds in the WORLD. Re-read that last sentence. That is not puffery. That is fact. Ask around my friends. I'm just telling you what I know. These guys are heavy hitters when it comes to financing and securities. As in the big boys. In my opinion, there is a very clear reason as to why this company is bringing its filings and legal work to a law firm of this indisputable caliber prior to dealing with the SEC. There must be some very important things that must be handled. I know from experience that filing with the SEC to get OTC trading approval is something any two-bit securities attorney can handle. Yes, some suck at it and it will take longer but most competent attorneys can handle it for a LOT less than a top tier firm (and many probably for a cut in the action). But when you step up to a firm of EdwardsAngell's level, this is a whole new level. Now you are making sure that everything will be perfect. You are making sure that credibility, respect and thoroughness are attached to every letter on every document. Now ask yourself ... why would a company trading at .0001 earlier this week be going to these lengths? As a pink sheet, they don't have to and nobody would care much if they just used an average attorney. But they are not. They have selected from the best and probably picked one of a handful that has the unparalleled experience and connections with private equity funds that others cannot match. Here's a link to confirm some information: I'm also impressed that this press release went out tonight. It shows that the earlier press release wasn't just a pump. They followed up on it. Kudos to management for that effort. My personal opinion is that this is a very, very unusual move for a pink sheet company to make. I've genuinely not heard of a pink sheet company before going with a law firm of this level for its filings. 99% of OTC stocks ALREADY LISTED don't go with a firm or accountant at this level. Take it for what it's worth but this looks like a huge hint of epic proportions. Yes, this is all still risky as any submicropenny mining stock would be. But in my 10 years playing the pennies (a hobby of mine), I've not seen this. Good luck to everyone. I'm buying what I can under .001 next week. You do what you want. This is one risk WELL worth taking in my opinion. By the way, here's a few clients of Edwards Angell: Bear Stearns Any of those ring a bell? LOL Wow. IP: Logged |
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mizzou7 Member |
At this time, I would like to express my sincere thanks to the memebers of this board that have continued to support CMKX... Without you I'm not sure if I would have walked into this stock, I would have probably run into this stock at a significant higher investment... They say once maybe twice in a life time... I really think we are memebers of the elite group that may have a chance of making enough money from one stock to change our lives... I have been trading stocks for several years and have never had a situation like this... feels good... doesn't it... Next week will be very interesting for CMKX, the shareholders and the market in general... Watch for stock prowlers monthly pick tomorrow (6-6-04)... I would be surprised if it was not CMKX... if it's not, they have not done their homework... GOOD LUCK TO ALL THE LONGS... I THINK IT'S OUR TURN... IP: Logged |
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joeyisthebest Member |
I am looking to add a million or two on monday at .0003 or .0004 IP: Logged |
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PAUL Member |
Anything happen since Thursday night when I left? Paul ------------------ IP: Logged |
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mizzou7 Member |
EVERYTHING... You better start reading the news and posts and prepare for next week... IMO... quote: IP: Logged |
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joeyisthebest Member |
great post mizzou7 I am with ya but I have only been investing in the stock market since last year in Jan. I started the pennies in Feb of this year and CMKX was my first buy. IP: Logged |
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VNGNTN1 Member |
COOL I got in low and out high. nice piece of change. When I bought I was busy and took a flyer based on some post of folks I respect. Wasn't bashful to grab the marbles and go home. Kept one shooter though for 1000shr. Turns out this parallels my days in grade school playing marbles. Kept som of those also. VAN IP: Logged |
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mizzou7 Member |
You better stick to trading if CMKX was your first buy... you have a winner and will only get better... GOOD JOB AND BEST WISHES TO YOU... I may have to take off work Monday to watch this unfold... what do you think ???
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cool1sh Member |
Pretty much like me.. ![]() I am into stocks for the past 2 years, came into pennies in Feb. By the time I know QBID, it was 0007. I am glad I've been holding CMKX since Feb.
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cool1sh Member |
Anybody have any thoughts about the timing of the last PR. Is it like they just wanted to release it the same day and ended up releasing at 11:30et. Why didn't they wait until Mon. I think I am thinking too much becuz of this excitement ![]() IP: Logged |
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joeyisthebest Member |
mizzou7 I wish I could take off of work to watch this on Monday. I called melvin to thank him in advance I left him my cell phone number so he might call me back on Monday. I have to work from 11AM to 630PM not fun I hate my job I fix cars. However, I was wondering if you do take the day off could you maybe give me a call at about 3PM to up date me on CMKX here is my number 1414-380-8863 thanks. IP: Logged |
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PAUL Member |
COPY FROM ANOTHER BOARD
UC, imo, executed one of the oldest tricks in the jungle, The MMs were asleep, IMO, with limited access to their "files" over the weekend. The MMs will really have to scramble to react to this NR before Monday morning, The planners of this NR, imo would have realised, in advance, that key people in the organization may be hard to reach over the weekend, and some services that supply the MMs will be closed, etc., severely impacting the MMs attempt to prepare for this new twist If such was the intention of the NR, I'd say Ambushed !!! This is all speculation, but I could be right .... MaddMaxx
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cool1sh Member |
From another board: Posted by: average investor Cali_trader - this has been discussed here today some. My guess you have either Scottrade or Schwab. It has been reported that neither of these brokers will let their customers buy CMKX and some other stocks. The thinking is: Because of the HUGH amount of shorted shares out by certain MM's, Scottrade CEO of board of MM NITE (reportedly NITE VERY short), Schwab is also a MM in itself and reportedly short also. By Short the speculation is NAKED SHORT shares not the normal short process. Know one knows for sure but there is a HUGH belief that this is true by shareholders and reportedly by CMKX CEO also. My idea at this time is that it is true. Seems to be valid since we've been hearing that CMKX is verry naked shorted. Why would Scottrade let SELL CMKMX but noy BUY? If they think CMKX is a scam, why'd a bigger broker like Ameritrade let you buy? IP: Logged |
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tic_toc Member |
This was posted on the official CMKX board but has suspiciously been deleted. Anyone know if affects anything? ....
"(B) Proprietary short sales No member shall effect a “short” sale for its own account in any security unless the member or person associated with a member makes an affirmative determination that the member can borrow the securities or otherwise provide for delivery of the securities by the settlement date. This requirement will not apply to transactions in corporate debt securities, to bona fide market making transactions by a member in securities in which it is registered as a Nasdaq market maker, to bona fide market maker transactions in non-Nasdaq securities in which the market maker publishes a two-sided quotation in an independent quotation medium, or to transactions which result in fully hedged or arbitraged positions." This rule allows a market maker to create a share in a company by simply taking the money from the buyer and making an electronic entry into their brokers' account, and the broker then electronically credits the buyer with one share of that company. But several things that no one is aware of take place in this transaction. 1. The buyer thinks that his share actually exists, but unless he or she has read his account agreement very carefully, he won't understand that all he did is give money to someone other than the company and never got any actual proof of ownership. His certificate, presumably, is sitting at the DTCC. 2. The market maker filling the order for one share has the buyer's money, and gave nothing except electronic acknowledgement of receipt of it ... the electronic entry in the buyer's account. One very important thing to understand here, is that at no point in this process, did the company in which the buyer 'invested' ever get one single dime of the money paid by the buyer for that share. There is a tremendous misconception out there that causes many to assume that when they buy a share of a company's stock, the company gets the money. This is only true if the buyer is buying an IPO, or a private placement of shares from the company. In any other sale or purchase of a stock by an investor, the company does not even see the money. This is particularly vexing when one begins to understand what happens in naked shorting situations. Situations where the provision that allows for naked shorting to maintain an orderly market is abused. Understand that whoever is doing the naked shorting is the one receiving the money. They keep it. For as long as it is convenient to do so. That is where the abuse of the rule comes in. That rule was created to allow for market makers, who by becoming market makers, agree to 'make a market' in certain stocks. That means that they will sell you a share, or buy a share from you, even if there isn't any available, or there are no other buyers for it. The Market makers' job is at least partly, to provide liquidity to the market. In thinly traded securities, or securities where there is a small public float, the market makers' ability to naked short is crucial to the liquidity of the market in that security. The abuse takes place when the market maker for whatever reason determines that the market for a particular security has become "disorderly". Too much buying pressure, for instance, can cause a price spike in that security that would have no relationship to the true book value of the security. The market maker then determines that he will naked short to fill orders, knowing that by doing so, the price will not explode on unusually high demand because he can literally issue new shares under this rule. The market maker then waits, with an open naked short position in that stock, until the buying pressure subsides, and he can buy enough shares back at lower prices to cover his naked short position. The rule does not have any time requirements and that allows for the market maker to keep a naked short position open for potentially years. In reality, until the buying pressure subsides enough for him to buy back at lower prices however many shares he needs to fill previously filled orders that make up his naked short position, it simply stays open, and the money sits in his account. Someone is going to ask the question, "So, how big are all those naked short positions, anyhow?" There is another provision that says that the market makers do not have to publish their open naked short positions. Never. At all. All OTCBB and Pink Sheet securities can be naked shorted - indefinitely - by market makers under this rule, and there is no way that an investor can discover if there is an open naked short position in a stock he may be interested in, or even how big that short position is. So far, the SEC does not see a strong need to correct this situation, either. [Mostly because the sheep...er, ah...investors are happy to hand their money to MM's without so much of a bleat of protest...everybody sing: please re-fleece me, take my cash, for I don't want it anymore...] Think about it. There are unlimited amounts of shares that were never authorized or issued by a company made available to the unsuspecting investor. They are authorized and issued by the market makers under this rule, and the company never gets any money from the sale of shares created under this rule. The temptation to abuse this rule is irresistable. Just do the math. A million naked shorted shares sold by a market maker at 0.01 (one cent) is $10,000 that the market maker keeps in his account, and that the company does not get. At 0.10 (ten cents) the market maker gets to keep $100,000. Now, that is for each million shares that the market maker creates. Under this rule, if a company and/or a group of shareholders begin to suspect a short position exists in their security, they can not discover this from any published source. The price of the stock remains constant, or goes down, even though there is unusually heavy buying ... buying that goes on for years in some cases. The company thinks that there is someone illegally shorting their stock in an attempt to ruin the company. The shareholders think that the company is illegally printing shares behind their backs and is scaming them. Eventually, this distrust between the company and it's shareholders becomes so great that investors start selling, or the company, already damaged by a supressed share price, is forced to issue additional shares into the market because other collateral-backed loans can not be made with share prices so suppressed. This is what the market maker is waiting for ... sometimes for as long as years. In both cases, the market maker eventually gets his naked short position covered, and all it cost was the company's reputation, the shareholders' money, and the SEC's full cooperation by allowing this abuse of the rule. There is a third situation that the market makers naked short into ... a stock that is a likely prospect for failure. In that case, they just continue naked shorting no matter what, keeping the price suppressed, and eventually the company files for bankruptcy, and ... the company goes out of business, the shareholders lose their investment ... and the market maker keeps the proceeds of his continued naked shorting. A good question for the SEC would be, "Seeing as how the companies that failed never got the proceeds of the sale of stock over and above their issued and outstanding, but the market makers did, isn't the SEC allowing actual fraud to take place, and condoning it by the creation and continued existance of this rule?" Like it or not, the SEC has allowed securities fraud to run rampant in the OTCBB and Pink sheet stock markets by simply looking the other way and allowing the market makers to target the OTCBB and Pink sheet markets as a source of huge amounts of cash, literally stolen from investors by the third party creation of shares by an entity other than the the issure - the company. This rule is nothing less than blanket permission by the SEC for market makers to become the issuers of company stock, no matter what the company's official authorized and issued amounts are. And that, my friends and fellow investors, is securities fraud on a scale almost beyond comprehension. IP: Logged |
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TruthTeller Member |
As the Truth unfolds.... I can not believe I saw 4 CMKX threads (or 5?) in the Allstocks page. Good luck to you guys. [This message has been edited by TruthTeller (edited June 05, 2004).] IP: Logged |
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TradingWizard Member |
I noticed some one wanted to start new thread - no way, this thread has so much valuable information, not just small talk, but PRs, comments, arguments - you name it. SO LETS KEEP THIS THREAD GOING! On the other hand, I can see that we all working as a team. I could not help seeing how some of you actually telling rickpic to buy some shares so he is not left out. This is very nice - and I think being and working as a team, we will be rewarded on the end. And lastly, my mom was reading my astrology back in January of this year, and mention that by the end of this year I will have a lot of money. I did not take this to my heart then, but now I am more and more starting to believe that she might be right! Good luck to all of you, and remember if you cash big, start looking for someone professional to reduce your taxes (like Debi :-) She is smart cookie around here and very generous). ------------------ IP: Logged |
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klempar77 unregistered |
[QUOTE]Originally posted by TradingWizard: [B]I noticed some one wanted to start new thread - no way, this thread has so much valuable information, not just small talk, but PRs, comments, arguments - you name it. SO LETS KEEP THIS THREAD GOING! On the other hand, I can see that we all working as a team. I could not help seeing how some of you actually telling rickpic to buy some shares so he is not left out. This is very nice - and I think being and working as a team, we will be rewarded on the end. And lastly, my mom was reading my astrology back in January of this year, and mention that by the end of this year I will have a lot of money. I did not take this to my heart then, but now I am more and more starting to believe that she might be right! Good luck to all of you, and remember if you cash big, start looking for someone professional to reduce your taxes (like Debi :-) She is smart cookie around here and very generous). TRADING WIZARD-AGREE WITH THAT IP: Logged |
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vado Member |
MM's that's all i hear...... Their pps is low because their Market CAP is low and their OS is HIGH. I think they are already overvalued at .0004. We'll see monday when the bottom drops off and it's back down to .0001. Let me have it...... IP: Logged |
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vado Member |
We're off to see the wizard...his name is Cassavant....but just like the wizard he's just a fake. Do all you people need a brain... IP: Logged |
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pharmdman Member |
vado, Even a technicolor dream can make you feel good! lol.. IP: Logged |
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Doji say what!! Member |
This is interesting institutional trading is very high in CMKX better than QBID HMMMMMMM WHAT DO THEY KNOW THAT WE DON'T! BETTER HOLD ALL THIS VOLUME IS FROM THE MM'S WHY? IP: Logged |
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