posted August 07, 2004 10:54            

July 23, 2004
There seems to be no shortage of entities bearing the Casavant name, and no end to their intramural transactions. CMKM Diamonds, Inc. (Pink Sheets: CMKX), was known as Casavant Mining Kimberlite International, Inc. until March 2004. Casavant Mining Kimberlite International, Inc. had operated as a private entity until its shareholders secured control of a public company by virtue of a reverse-merger with Cybermark International Corporation in January 2003.

The President and CEO of CMKM is Urban Casavant.

On July 19, 2004, CMKM announced that it had agreed to invest $1 million in a company called Casavant International Mining (CIM) – that Casavant name again. CMKM stated that, in return for its investment, it would receive “a 10% lifetime royalty on all mineral claims of CIM, specifically including the George Lake Zinc Deposit.” According to the press release, in addition to the royalty, CMKM will receive 40 billion shares of CIM stock, which will be distributed to CMKM shareholders.

The July 19th press release leaves several critical questions unanswered. Does CMKM actually have $1 million in cash, and if not, how does it plan to raise the funds? As we noted in our initial article on CMKM, the Company no longer files regular reports with the Securities and Exchange Commission, so its financial condition is a mystery. See CMKM Diamonds, Inc. - A Familiar Drill.

Equally mysterious is the number of outstanding CMKM shares. The Company is authorized to issue 500 billion shares but, here again, the absence of public filings leaves investors guessing how many shares have actually been issued. Update: CMKM Diamonds, Inc. - Less and More. In any event, billions of CMKM shares have been traded virtually every day since at least March 2004.

The number of outstanding shares is significant since it will dictate how many of those 40 billion CIM shares each CMKM stockholder will receive. On the other hand, it may ultimately make little difference; CMI is a private company and consequently there is no liquid market for those shares – and no assurance that CIM, like CMKM, will not simply issue more shares and dilute its shareholders.

Investors may also be curious about the relationship between CMKM and CIM. The July 19th press release certainly implies that CMKM and CIM are separate entities – that CMKM does not already own CIM. After all, CMKM would not have to acquire a 10% interest in CIM royalties if it already controlled those rights.

So what relationship does exist between CMKM and CIM? According to the press release, the President of CIM is Ron Casavant and the Treasurer/Secretary is Dave Desormeau. While Mr. Desormeau does not share the Casavant name, both he and Ron Casavant have had prior relationships with CMKM. A Schedule 14c Information Statement filed with the SEC at the time of the reverse-merger (before the Company ceased to file reports) disclosed that Ron Casavant owned 30 million shares of CMKI common stock (the Casavant family, including Urban Casavant, owned a total of 770 million shares at that time – which was before the Company expanded its treasury to 500 billion shares); and that Dave Desormeau had been elected as a director of CMKM.

Again, absent more recent public filings, there is no public information indicating whether Mr. Desormeau remains a director of CMKM, or how many shares of CMKM are now owned by Ron Casavant and all of the other Casavants (23 of them were listed as CMKM shareholders in that Form 14c).

On the other hand, we were able to learn some information about Casavant International Mining from Nevada’s corporate records. Those files reveal that Casavant International Mining Corporation was formed in January 2003, and that its President is Urban Casavant. Those records also indicate that the corporate secretary is Carolyn Casavant and the treasurer is Emmerson Koch.

So which Casavant really does run Casavant International Mining – and does it really matter?

And then there is this – a disquieting sense of déjà vu for those who have been following events at CMKM.

On December 8, 2003, CMKM announced

the spin-out of corporate zinc deposits at George Lake, Saskatchewan, its wholly owned subsidiary Casavant Mining International, Inc. (CMI). CMKM shareholders received a dividend of one share of CMI stock on October 3, 2003.

While the language is somewhat confusing, it suggests that (i) CMI was a wholly owned subsidiary of CMKM; and (ii) CMKM shareholders will receive CMI stock.

The December 8, 2003 press release also stated that CMI was a private company that would become public within two weeks. Apparently, CMKM intended to merge CMI with another Pink Sheet company, Mirador Corporation. That transaction, however, was later aborted.

We have found no indication that CMI ever became a public company.

Sounds confusing – Casavant Mining International and Casavant International Mining – both mining for zinc in the same vicinity. Aren’t all of these Casavants tripping over one another?

So what, if anything, is the relationship between CIM and CMI – aside from their obvious relationships with some or all of the Casavants? Based upon the Company’s announcements it would seem that both CIM and CMI are involved in the search for zinc deposits in the same area - Lake George, Saskatchewan. Why were two different companies created – and where was CMI incorporated? Is it possible that each company controls different zinc deposits at the same location? If those zinc deposits were owned and controlled by CMI, a wholly-owned subsidiary of CMKM, how were they transferred to CIM?

CMKM shareholders should be interested in the status of CMI and its zinc deposits. After all, they received CMI shares in late 2003, didn’t they?

What ever happened to CMI?

More Shares to Spare

Interestingly enough, CMKM has promised its shareholders another dividend as well – this time in shares of one of its joint venture partners. On July 18, 2004, CMKM issued a press release to announce that U.S. Canadian Minerals, Inc. (OTCBB: UCAD) had agreed to purchase 5% of CMKM’s mineral claims in exchange for 7.5 million shares of U.S. Canadian stock.

In recent days, U.S. Canadian stock has been trading at about $4.80 a share, meaning that the 7.5 million shares would be valued at more than $36 million - assuming there is a market for the stock when it eventually can be sold. It is difficult to conceive how 5% of CMKM’s royalties could possibly be worth that kingly sum. In the absence of audited financial information about CMKM, investors may be understandably skeptical about any of these valuations.

Here, again, CMKM says it plans to distribute those shares to its stockholders as a dividend. Once again, the number of outstanding CMKM shares will be critical since it will determine how many U.S. Canadian shares each CMKM investor will receive. For example, if CMKM has issued all 500 billion shares, the owner of 1 million CMKM shares would receive 15 U.S. Canadian shares.

There is a catch, however. The shares will not be registered, and the agreement between CMKM and U.S. Canadian suggests that there are impediments to their future sale. Here is what the agreement provides:

Purchase Price. Seller will sell 5% of all current and future claim holdings and mineral interests in exchange for 7.5 million shares of common stock of U. S. Canadian. The shares exchanged hereunder shall be newly issued restricted shares under Rule 144 with a holding period of at least one year from the date of their issuance by UCAD and shall not have the holding period thereunder shortened by means of a dividend. Such shares may be distributed by means of a dividend but shall not take the holding or tacking periods of the underlying shares. By this agreement between both parties, in the event such transfer is initiated, the shares shall be deemed cancelled and void and this Agreement is deemed authorizated (sic) by both parties for such cancellation (sic).

These sale restrictions are vague and somewhat confusing. At what point can the shares be cancelled, and how will that affect the CMKM shareholders who receive the dividend?

The agreement also gives U.S. Canadian a one year option to acquire an additional 10% of CMKM’s mineral claims for $15 million in cash.

While all of these numbers sound impressive, it is difficult to understand the valuations afforded to either company. Unlike CMKM, U.S. Canadian does file regular reports with the SEC – and its financial statements do not paint a pretty or promising picture. As of March 31, 2004, U.S. Canadian had $408 in cash. It claims to have an additional 6.9 million in assets based upon the value of stock it contributed to a joint venture.

As of March 31st, U.S. Canadian had issued approximately 7.6 million shares – making the Company worth more than $35 million on paper based upon the current share price. That also means that CMKM will be acquiring 50% of U.S. Canadian.

The current price of U.S. Canada shares defies logic. U.S. Canadian had no revenues for the first three months of 2004. The Company has incurred cumulative net losses of more than $18 million since its inception in December 2000.

With $408 in the bank, and no revenues, it is difficult to see how U.S. Canadian will be able to pay $15 million to CMKM within the next year. It appears unlikely that the money will come from one joint venture already being pursued by the two companies – the Carolyn Pipe. So far, that project has produced two microscopic diamond particles weighing a total of .000005 carats.

In the end, investors can only wonder why CMKM is suddenly on a binge – issuing illiquid shares of other companies as dividends. Who knows? Maybe they ran out of their own.

©2004 Stock Patrol.com. All rights reserved.

WE'RE BACK ON PATROL

posted August 07, 2004 10:57            

quote:

---

Originally posted by Upside:
I was on Paltalk briefly last night listening to Sterling. The guy is completely out of his mind. Somehow through his double covered, double naked short theory and other things thrown into his blender, he's come up with a value for CMKX that ranges from 300 billion to get this, 850 trillion dollars! He's insane! The sad thing is it's like hero worship with this guy. People mention his name with awe. Say one bad thing about him or even question one of his wild theories and you're booted immediately. Guess it's not so bad here after all.

---

Obviously as an investor in CMKX I like to read and believe in the positive theories with the company. But I've said it before I'll say it again, Melvin makes me nervous when he speaks and Sterling just makes me wonder. Don't get me wrong, I like Melvin. But he's not the person that people should be turning to for answers regarding CMKX. He's not in the inner circle which is obvious.

And I think a combination of he and Sterling being on Paltalk that people just give too much credit their presence. I use to read Sterling's posts with great interest. But one evening I listened to him on Paltalk and he was so out there with his answers to people's questions that I won't listen to him anymore. And then when Melvin comes on Paltalk with him it's like a train wreck between the two of them. Please remember, I like Melvin, but as an investor he has nothing to say for the company that I'm invested in that makes me feel comfortable. All opinions folks. Please no cards and letters.

posted August 07, 2004 11:42            

Dear D. *****:

Thank you for choosing E*TRADE.

Your request to have your securities sent to you in certificate form cannot be processed at this time due to the number of shares. Certificates are limited to no more than 7 digits for the number of shares. Please call one of our financial service associates for a resolution to this issue. I apologize for the inconvenience.

For further assistance, please use our E*TRADE Financial Help center at https://us.etrade.com/e/t/estation/helpcenter, or call us at 1-800-786-2575 or (916) 636-2510 if outside the US.

Sincerely,

Scott Garner
E*TRADE Financial Customer Service http://www.etrade.com
---------------------------------------------
IMO-Debi

posted August 07, 2004 12:09            

There were rumors last night that he said he had something "big" on his desk. People were speculating this was the bombshell PR everybody has been waiting for since he gets to see PRs 12 hours before they are issued (supposedly).

I am waiting...no bombshell PR today = no more sympathy for "Uncle Melvie". (I will have no respect left for the guy either way, though).

posted August 07, 2004 13:10            

quote:

---

Originally posted by bill1352:
i'm not a believer in the naked short theory for one main reason. why? the whole idea is based on the company going bankrupt and thus never having to cover any naked shares. a mm would look for a company that with a little help will fail. at some point i'm sure cmkx fell into this catagory but as things progressed that changed. mm's are not stupid even naked short pumpers agree to this. mm's would not hold naked shares of a company that started to go places. as soon as a company started to look like it was headed in the right direction they would cover. mm's are in it to make money by hook or crook and covering naked shorts does not equal making money. my guess is that last run up to .001 was the cover and the pps of today is because the o/s is stupid. ppl want to believe that UC has control of 51% but they fail to look at the rule that says if written in at time of incorperation a company can do what it wants without a vote as Upside found in Nevada state laws. i'm not saying cmkx will not do well or is a scam. i think in the long run it will find diamonds and the pps will increase a great deal. i believe these dividends are to say i'm sorry for the huge o/s, here are some shares of a company with a normal o/s to make up for it. this is just my opinion. i'm a shareholder looking at this from what i think is a realistic point of veiw

---

posted August 07, 2004 13:17            

quote:

---

Originally posted by glassman:
I'm not a securities lawyer, i'm just an investor and i noticed these things.... and a WHOLE LOT more........every time i come down here to post i get treated very rudely tho.......
ever seen Boiler Room?????

---

posted August 07, 2004 13:28            

what upsets me about this one is that the markets are a place where the real goal is to RAISE WORKING CAPIAL to make business grow.
i rarely ever post negative things on the boards even when i find them, cuz i am no guru, and i don't expect/want to become one. i am just an investor that is struggling to acheive the american dream like most of the people here. the SECRET to success in the markets is that there is no secret.. it's hard work just like everything else.. once you accept that, you will find yourself making money-- regularly.........not alot at once overnite, but regular percentage gains that eventually lead you to be able to lead a comfortable lifestyle.....
UCAD was formed in Jan--see my posts in free-for-all if you want the references...

posted August 07, 2004 13:31            

quote:

---

Originally posted by JBCak47:
" dislike these guys who are way out there with their theories, and try to convince me that Ned Beatty had fun on his vacation to banjoland with Uncle Toothless ringing his ears off and making him sqeal like a pig!"

Huh?

---

posted August 07, 2004 13:38            

quote:

---

Originally posted by glassman:
very fair response will...
i have nothing against putting 100$ or more if you can afford it-- into stocks like this...right now there seems to be about a million$ a day flowing into this stock

what upsets me about this one is that the markets are a place where the real goal is to RAISE WORKING CAPIAL to make business grow.
i rarely ever post negative things on the boards even when i find them, cuz i am no guru, and i don't expect/want to become one. i am just an investor that is struggling to acheive the american dream like most of the people here. the SECRET to success in the markets is that there is no secret.. it's hard work just like everything else.. once you accept that, you will find yourself making money-- regularly.........not alot at once overnite, but regular percentage gains that eventually lead you to be able to lead a comfortable lifestyle.....
UCAD was formed in Jan--see my posts in free-for-all if you want the references...

---

posted August 07, 2004 13:51            

quote:

---

Originally posted by will:
JB: You have never seen "Deliverance" ?

---

LMAO. He was watching Star Wars and playing with his "Yoda" when Deliverance was on.

posted August 07, 2004 15:01            

So, I am overall kind of disgusted with the OTC and pink markets in general. One of the reasons I like this stock is I think they are addressing the Naked Short problem they had and possibly still have, plus any other credibility issues. I can understand taking yourself off of reporting status and buying time to put some deals together. Especially given the secrecy of the diamond and mineral exploration world. It does make DD almost impossible though. It comes down to how do you read the PR's, the mineral content of the land in the area -given all the available information known so far, and how do you read the character of the characters involved. They are characters too. Huge divergences of opinions all based on the same information. So I have to go with my ability to read people and situations accurately, filtered thru everything I know about the stock market and go with my instincts. I can be wishy, washy about a lot of stocks. I have never had this much of any stock. I feel very confident with what I have purchased and will probably be buying some more.

posted August 07, 2004 17:07            

quote:

---

Originally posted by Royals:
Bill, Totally agree. The more I research this company the worse it gets. Juina was in litigation,Yellow river going broke. Several of are so called partners were previously in the food industry and went broke there. I'll leave the few dollars I have in this stock just in case but the history of Casavant is terrible.

---

posted August 07, 2004 18:18            

**JEFF JOKE**

Top 8 Signs when Market Maker JEFF is Affected by the CMKX BOMB!

"Jeff can't come to the phone right now..he's on the ledge."

"Jeff won't be in today...he was made an offer and he refused."

"Jeff left the building and not via the elevator..if you catch my drift."

"Jeff is on another line with his Mommy..would you care to hold?"

"No sir, that wasn't Jeff streaking naked through the Stock Exchange"

"JEff is meeting with the SEC as we speak."

"I'm sorry, ma'am but that was Jeff being led from the Stock Exchange naked except for the cmkx tickets stuck to his body via maple syrup."

"Yes sir, that is Jeff in the White Bronco leading the cops down the freeway."

KARBIN

posted August 07, 2004 19:15            

To get the drift of this CT of Christian traders has been trying to get an interview with Melvin or UC for a while now. CT asked Melvin on Paltalk the other day a question about setting up a meeting and didn't get an answer. Then I saw this post today.

We've been contacted.
hope you're ready for this:
http://christiantraders.com/warning.html

CT

The response

For the record, I have issued the following official response.
http://christiantraders.com/response.html

Hope you enjoy this. -Debi

[This message has been edited by WWJD-thru-me (edited August 07, 2004).]

posted August 07, 2004 20:37            

My Yoda... I miss those days.

So how is everyone?

-John-

My neogbor/friend is buying into CMKX, a small amount, like perhaps 60k shares. I think he will have the account ready by Tuesday.

I talked my sister into opening a trading account up for my nephew who is eight, going on nine. I figure by Friday the account can be funded

We are planning to teach him early and at the same time give him a head start!

posted August 07, 2004 23:44            

quote:

---

Originally posted by glassman:
I'm not a securities lawyer, i'm just an investor and i noticed these things.... and a WHOLE LOT more........every time i come down here to post i get treated very rudely tho.......
ever seen Boiler Room?????

---

Don't worry old buddy, I've got your back.
The only reason CMKX/ CMKM/ CMKI had a moderate run was because they switched transfer agents (involuntarily). This stemmed the flow of certificates to the MM's briefly. They now have a new transfer agent and are in the midst of generating "all new" rumors to lure the naive intoforking over their money so UC can buy another funny car.

posted August 07, 2004 23:58            

quote:

---

Originally posted by Upside:
DQR!!!!
Welcome back good sir! Havn't seen you around since the Baaaaaaart days!

---

posted August 08, 2004 07:49            

quote:

---

Originally posted by Money_Penny:
LOL. The evil forces are strengthening. The death star is fully manned. First "Up Vader" and "Will the Hutt", and now "DiQuiGreedo" and "Glassgano". Looks like they're getting ready to attack the CMKX solar system in full force. "John Skywalker" and "Han (Stoned) Solo", where are you, we need your help! ("Obi-Pharm Kenobie", we need you, too!).

[This message has been edited by Money_Penny (edited August 08, 2004).]

---

posted August 08, 2004 07:59            

QUOTE]Hey pal how about growing up and quit playing with dolls. Give me some positve facts on this stock. How about the low down on UC's history of running a revenue producing company? Tell me what he's doing with the shareholders money other than giving it to his family and race car team. Has he bought a new drilling rig yet. What's that...he's not even drilling? Maybe you should go back to playing with your G.I. Joe's and Barbie's. CMKX will be pulling this scam for a while.

[/B][/QUOTE]I dont post much because I am
fairly new to penny stocks. I try to read
post and learn. From what I have read of
your post and seeing the one you Stared
today titled wallce. I can only come to one
conclusion from what I have learned from
others post. IMO you are a basher. I am strong In cmkx based on the DD

posted August 08, 2004 08:14            

quote:

---

Originally posted by lbulbu:

QUOTE]Hey pal how about growing up and quit playing with dolls. Give me some positve facts on this stock. How about the low down on UC's history of running a revenue producing company? Tell me what he's doing with the shareholders money other than giving it to his family and race car team. Has he bought a new drilling rig yet. What's that...he's not even drilling? Maybe you should go back to playing with your G.I. Joe's and Barbie's. CMKX will be pulling this scam for a while.

---

posted August 08, 2004 08:59            

There are areas that need to be addressed by CMKX but they are obviously working on them. They have a quality law firm and lawyer known for his personal integrity. Roger Glenn formerly worked for the SEC.

Here is the DD links for the lawyer Roger Glenn and his law firm. Then browse through the Sarbanes Oxley act. This piece of legislation was drafted by Roger Glenn. Follow these links to a book appropriately titled Corporate Responsibility in 2003 bt Roger Glenn. Every thing the man and his law firm does shines with integrity. This man would not be part of a scam. His integrity is beyond reproach but many of the posters here whose only purpose is to bash have not earned that same level of trust.

The firm’s website is at http://www.EdwardsAngell.com.

http://capitalmarkets.rrdonnelley.com/download/refpubs/Corporate_Responsibilities/38331.htm

Introduction
3

The Sarbanes-Oxley Act of 2002
4
Prohibition on Loans to Directors and Executive Officers
4
New Standards for Audit Committees
5
Requirement for Disclosure Controls and Procedures and Internal Controls for Financial Reporting
8
Rules for Disclosing Non-GAAP Information
9
Disclosure of Off-Balance Sheet Financing
14
Code of Ethics
16
Liability for Improper Influence on the Conduct of Audits
17
Forfeiture of Bonuses and Profits in the Event of a Restatement
17
Officer and Director Bars and Penalties
17
Whistleblower Protections
17
Other Protections
18

Listing Requirements
19
New York Stock Exchange
19
Nasdaq
22
Conducting Board Meetings
23

Disclosing Non-Public Information
25
The Pre-Regulation FD Framework
25
Regulation FD Framework
25
Practices and Practical Considerations to Comply with Regulation FD
27
The Consequences of Violating Regulation FD
28

Periodic Reporting
32
Annual Report on Form 10-K
32
Quarterly Report on Form 10-Q
33
Certification of Annual and Quarterly Reports
33
Current Report on Form 8-K
36
The Proxy Rules
37

Reporting and Other Obligations of Stockholders and Insiders
43
Section 13 of the Exchange Act
43
Section 16 of the Exchange Act
43

Trading In Stock
46
Trading on Material Non-Public Information
46
Penalties for Securities Fraud
47
Trading Windows
47
Trading During Pension Plan Blackouts
48
Resales of Restricted Shares
50
Stock Repurchases by a Company and its Affiliates
51
The second link brings you to the legislation and the book and if anyone really wants to find out about this lawyer this is the DD.
---------------------------------------------
I am not trying to imply that respected posters with differences of opinions are bashers. There are some new faces here coming in for the sole purpose of bashing this stock and this company. Given the fact that this stock is very strongly rumored to be Naked shorted to the extreme; I find it reassuring that bashers are arriving just in time to attempt to shake out shares that the MM's need to cover their short. Why now? Why bash a .0004 stock? I know why. It is not a coincindence in my opinion. It is a desperate last minute attempt to save their behinds. Seeing them here makes me want to buy more stock. Maybe they are pumpers. They bash the stock so we are convinced to buy more. If they really want to save us from buying CMKX they should leave.

That is my opinion and I sure hope they take it to heart. If you really don't want us to buy CMKX don't bash or we will think it is more valuable. Why would your bosses pay you to bash something if it wouldn't make or save them money? GLTA-DD-IMO-Debi

Document Retention and Destruction
53
When the Duty to Preserve Documents Arises
53
Materials that Must be Preserved
53
Civil and Criminal Penalties for Destroying Documents that Should have Been Retained
54

Exhibit A—Sample disclosure controls and procedures
A-1
Exhibit B—Sample code of business conduct and ethics
B-1
Exhibit C—Sample audit committee charter
C-1
Exhibit D—Sample nominating and corporate governance committee charter
D-1
Exhibit E—Sample compensation and benefits committee charter
E-1
Exhibit F—Sample corporate governance guidelines
F-1
Exhibit G—Sample general statement of policy on disclosures
G-1
Exhibit H—Sample disclosure policy and Regulation FD
H-1
Exhibit I—Sample Section 16(a) memorandum for directors and executive officers
I-1

posted August 08, 2004 11:17            

Fact, we have diamonds (just how much we will know for sure, soon).

Fact, we are going to be drilling soon (The permits are completed).

Fact, we have the finest legal representation available (this Glenn guy is for real).

Fact, Our outstanding share total is unknown..and this is important (we will get info on that soon, that's for sure).

Fact, this stock is way undervalued, even at the current guesses of 483 billion shares out.

Fact, The powers that be are proven deal makers, proven caring people and proven intelligent decision makers (check out the PRs from above posts).

Fact, Three dividends are committed to this stock (the values and amounts are still questioned).

Fact, This is a long term stock, not a get rich quick stock (although some will make good money and run) God bless them but we will see them later.

Fact, There are some unknowns that the powers that be are keeping tight to the chest(the poker hand should not be shown until we're called).

There are many facts that make this the buy of a lifetime IMO. I'm holding long and strong. I will try to be strong. I honestly believe this is going to be fun. Hell, it's already been a wild ride.

posted August 08, 2004 12:02            

He's up to a whole shiney news 2004 Nickle per post!!!

CONGRATS WALLACE ON YOUR RAISE!!!!

posted August 08, 2004 12:02            

quote:

---

Originally posted by Royals:
[QUOTE]Originally posted by Money_Penny:
[b]LOL. The evil forces are strengthening. The death star is fully manned. First "Up Vader" and "Will the Hutt", and now "DiQuiGreedo" and "Glassgano". Looks like they're getting ready to attack the CMKX solar system in full force. "John Skywalker" and "Han (Stoned) Solo", where are you, we need your help! ("Obi-Pharm Kenobie", we need you, too!).

[This message has been edited by Money_Penny (edited August 08, 2004).]

---

[/B][/QUOTE]

posted August 08, 2004 12:06            

1. Three different companies as a dividend

2. With a buy back programming already happening/happened.

3. With constantly expanding mineral claims?

Go back with Wallace you idiot...

This guy Royal made a thread thanksing Wallace... what type of crap is that. Also bear in mind this guy Royal is BRAND NEW and has come out of no where...

Again, either buy the stock or get out of this thread...

We had like a good two weeks of quiet!
-John-

posted August 08, 2004 12:07            

*CMKX-500 Billion OS Revision Solution*
http://ragingbull.lycos.com/mboard/boards.cgi?board=CMKX&read=455098

By: stervc
08 Aug 2004, 11:14 AM EDT
Msg. 60946 of 60968
(This msg. is a reply to 7834 by stervc.)
Jump to msg. #
*CMKX-500 Billion OS Revision Solution*

(An old post for some more thoughts to ponder.) http://www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=7834
By: stervc
27 May 2004, 09:22 AM EDT Msg. 7834 of 60925
(Msg. is a reply to by None.)
*CMKX-500 Billion OS Revision Solution*

Everyone, my apologies for giving you a rush job that was fairly close to how a worse case scenario should be considered. From going back and doing some review, I felt some corrections and revisions were in order.

There were some changes that I believe made stronger upcoming thoughts. There were also some typos and a slight increase to the original Outstanding Shares (OS) number to reflect a more accurate worse case scenario. If this is going to really be a worse case scenario, we should presume that the OS is the max which would be 500 billion.

** It was discovered not long ago that Urban raised the AS to 500,000,000,000 to use as an insurance police against any takeover efforts. This would mean that he felt that someone might be trying to take over CMKX as a business entity and could have bought the required 51% of CMKX shares to use as controlling and voting rights for CMKX.

** This would mean that the increase of the OS to 500 billion was to make sure they capture the needed 251 billion of the OS to have as the company’s restricted shares and 249 billion to have available for the float and other uses. This was to create their own insurance policy to prevent any takeover attempts.

** I do believe that the 249 billion shares are shares that were being bought and retired to decrease the OS and the float, but I will still presume the OS to be 500 billion shares.

** Having such a large OS is not an issue because of the value that resides within CMKX. An OS of this magnitude is required to make sure there is enough liquidity for trading purposes.

** Another key thought is to understand that it’s all about “Supply versus Demand” when your shares are trading in the market. Once the float is gone, it’s gone. It doesn’t matter whether or not your OS is 5 million shares or 5 trillion shares. When the float is gone, it’s gone. The revealed value will cause the float to be dried up very quickly once officially released if there is not a short position.

** I do believe that there is a short at/or near the amount of 1 trillion shares. I also believe that Urban helped to create that short to control the significant increases in future share prices in CMKX. Below is a link to the best post I’ve ever seen about CMKX and its naked short position written by an individual named PennyWrangler that is a must see for all to read!
http://cmkmdiamonds.********s27.com/index.cgi?board=news&action=display&num=1085572932

The beauty of this post is that if there really isn’t a short, then the below example should apply as a minimum which was derived from determining the use of a fairly selected Intrinsic Value of $850 billion from the use of residual valuation pricing techniques.

Let’s consider some logical deduction. If that little piece of 58,000 acres of DeBeers could be valued at $40 to $80 billion, surely our now nearly 3 million acres of land that surrounds those 58,000 acres of land of DeBeers could be worth much more. (OK, maybe I know this, but let’s act like I don’t.) Let’s even forget that we “probably” own two thirds of that piece of land too. Keep the theories in the link below in your thoughts too: http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=6425

What if $40 to $80 billion is the price valuation ratio for every piece of the 58,000 acres of land? This would equate to our pieces of land in the FALC region to be:

3,000,000 ÷ 58,000 = 51.7 groupings of 58,000 acres

Some groupings could be easily valued in the area of $80 billion while some $40 billion for the low side. From my thoughts on what I am expecting to be released from the “rumored” aerial survey results, those groupings could very easily be averaged to reflect value from $40 to $80 billion as what Dr. Hutchison talked about in the interview link below. I think things worked out very well.

Because of such, I think that it will be safe to use $40 billion as a figure for value to include capturing of the now known abundance of copper, gold, zinc, titanium, platinum, and of course plenty of kimberlite and diamonds to say the least that is owned by CMKX.

This would reflect such below as the value of CMKX from most of its resource:

$40,000,000,000 x 51.7 groupings of 58,000 acres = $2,068,000,000,000

Hopefully you can now see how with even using an intrinsic value of $850 billion is very conservative when providing logical deduction as to how CMKX could very well be worth over $2 trillion with its resources.

Since we don’t really know if the $850 billion we are using as the Intrinsic Value is based on an annual, quarterly, or exponential value, we will not need to multiply by a PE Ratio because the growth rate is not known for the residual valuation pricing techniques just used.

Intrinsic Value ÷ OS = Price that CMKX is worth
$850,000,000,000 ÷ 500,000,000,000 = $1.70

Keep in mind that 51% of the OS, 251,000,000,000 shares, will be restricted and owned by insiders. This means that the share structure would look as followed:

500,000,000,000 = OS
251,000,000,000 = Restricted Shares
249,000,000,000 = Float

In my opinion, the OS is not going to matter in the big scheme of things for the plan that will be presented. Whatever the amount that’s needed is required to allow for the movement of key deals to be transacted while implementing safety measures at the same time. This is to not impede the Tender Offer to be issued to us for going private while forcing a fair option for covering by the Market Makers (MMs). This is why we do not need a reverse split too.

Expect to see the PRs to justify value and growth of the company and everything else will run its course to justify the numbers I used above. I hope now you can see why in the link below that $1.00 is a good minimum share price to offer to buyout us shareholders for Urban and CMKX to go private.
http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=6425

From the logic above, CMKX could easily be worth $1.70 or more per share. This would no doubt force a naked short covering out of this world. The good thing about this, even if you don’t believe that there is a short, then what was posted above would transpire still as a minimum as we begin to have substance revealed to us from the company.

Urban has a great many friends and family members invested into CMKX at much higher prices than where CMKX is currently trading. Just breaking even is not the goal. Urban is a people person and has a wonderful attitude, understanding, and concern for all shareholders to include us little guys here in RB land which is why he is making sure we get the word first! I trust Urban and his team of experts and so should we all!

All of my thoughts to include those in this post concerning CMKX have been nothing more than “theories” until converted into “facts” by Urban and CMKX. It is still my belief that CMKX will help many to achieve prosperity!

All is Well!

posted August 08, 2004 12:11            

Is Han SToned Solo SP or me?

Or am I John Skywalker? Wait maybe thats UC since he can walk on water, hence Skywalker!

Maybe I am just Yoda!

Soar CMKX will. Ground diamonds find they will.

Get three dividends we shall

Dump in pants Wallace will have...Clean up with his tounge Royal will.

-John-

Pharm, your new name is Obie Pharm Kanobie

posted August 08, 2004 12:29            

May God Bless All.

quote:

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Originally posted by tahoechris:
sterling=crazy ideas that I really don't see being possible, but believed by thousands of his followers for some reason.

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posted August 08, 2004 12:30            

quote:

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Originally posted by tahoechris:
sterling=crazy ideas that I really don't see being possible, but believed by thousands of his followers for some reason.

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