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Originally posted by Bam Bam 17:
By Sterling
http://www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=15438

Gentlemen’s Agreement*CMKX*UCAD*MMs…

Before reading this post, put your mindset to think outside the box. You got to realize that whatever is going to happen is going to happen outside the box. It will be out of the norm from what you are use to seeing. These are only “theories” until proven to be “facts” by the company.

Back on 10 Apr 04, I had posted some rationale as to how things could work if UCAD reverse merged into CMKX (not CMKX reverse merging into UCAD). This would have a forward split affect on the shares of UCAD and no affect on our CMKX shares, but would significantly and immediately enhance value in CMKX to the pennies for starters. Below is a more user-friendly revision of that post and very powerful.

On 3 Jun 04, we announced that we are going to retain Pacific Stock Transfer, Inc., to become the new Transfer Agent for CMKX. This is another one of those subliminal hints that we are about to do something very serious and significant with UCAD who also has Pacific Stock Transfer, Inc. as the same Transfer Agent. http://www.knobias.com/individual/public/news.htm?ei d=3.1.4401cf3a8591894ec82b0740e191aaf15172c7a003501d4edd4c45337763294a

According to the most recent 10Q filed on 21 May 04, the AS & OS for UCAD is below:

Authorized Shares (AS) = 100,000,000
Outstanding Shares (OS) = 7,770,745

Since I do “now” believe that there will be a CMKX and UCAD merger, I think that the ratio for the merger will be a 1,000 to 1 forward split ratio for UCAD to allow for UCAD’s share structure to be absorbed into CMKX’s share structure. Because of such, this means that the OS for CMKX must be 1,000 times more than that of the UCAD OS as indicated below:

CMKX OS = UCAD OS x 1,000
CMKX OS = 7,770,745 x 1,000
CMKX OS = 7,770,745,000

You could determine or derive the UCAD forward split ratio too by dividing the OS of UCAD by the OS of CMKX as indicated below:

UCAD OS ÷ CMKX OS = UCAD Forward Split Ratio
7,770,745,000 ÷ 7,770,745 = 1,000

When a company does a forward split, it is usually indicative as a fundamental sign of growth. I tell you what! If UCAD drops news of a 1,000 to 1 forward split many would buy UCAD up to levels a lot higher than where it’s at now. If I had to guess, I would think that UCAD would trade well over $40+ per share. Those who trade forward split stocks with huge ratios in the past know exactly what I mean.

Any significant news released through UCAD or CMKX would move UCAD up tremendously knowing that they would become one and since the float is so low in UCAD.

For calculation purpose, let’s assume that the price of CMKX is .001 cent and that the price of UCAD is $1.00 per share to just keep the math simple.

So, this is saying that every 1 share of UCAD at $1.00 per share is equal to 1,000 shares of CMKX at .001 cent per share. Or to better put it…

1 UCAD share x $1.00 = $1.00 per share
1,000 CMKX shares x .001 = $1.00 per share
1 UCAD share = 1,000 CMKX shares
So,
1 UCAD share ÷ 1,000 CMKX shares = 1

Someone might ask… Why would UCAD accept to do such a merger with CMKX? Because Urban and CMKX has proven that they have enormous value that would make UCAD trade at levels higher than what they have already been trading.

This means that, until the merger actually takes effect, as the price of one goes up, so does the value in the other and the price should follow. This allows for CMKX and UCAD to carry each other upward in share price and value as huge news gets released on CMKX. Let’s observe to determine the price of equilibrium…

If huge news is dropped and CMKX runs to .05 cents, this would mean that based upon the merger law of equilibrium from the above scenario, the value of UCAD would be worth the figure below from the above formula. Determine by solving for X:

Formula
1 UCAD share ÷ 1,000 CMKX shares = 1

1 UCAD share = X

If CMKX runs to .05 cents, then…
1,000 CMKX shares = 1,000 x .05
1,000 CMKX shares = $50.00

Now let’s solve for X…
X ÷ $50.00 = 1
X = $50.00

The way to interpret this is to ask yourself what price for X divided by $50.00 would give me an answer of 1. If by further calculating the problem, you would see that any price of X that gives you a total of less than 1 is an indication that such level is still undervalued compared to the value of the comparing stock. The formula would work in reverse for determining the value in CMKX as UCAD goes up too.

This means that if UCAD is still sitting at $1.00 while CMKX is sitting at .05 cents, then you would know that UCAD is significantly undervalued until it is bought up to its equilibrium price of $50.00 per share.

This is why UCAD would highly consider merging into CMKX knowing that CMKX has value that they could piggyback on. The opposite effects could result with CMKX by just solving for CMKX instead of UCAD in the above example to show CMKX could piggyback on the value of UCAD as the price is increased.

With UCAD having such a low float, it would not take much buying to get UCAD to extremely higher levels that would carry CMKX to those higher levels of equilibrium. This would be a win win situation for the companies, shareholders, and even the MMs.

The MMs would still have to pay, but the blow would not be as bad because they could buy shares in UCAD to cover their short position in CMKX by 1,000 times from buying UCAD shares along with buying shares in CMKX to cover too. As they cover through UCAD, they will ultimately continue enhancing the value of CMKX.

Going private will be a plan that UC will execute as a last resort if the MMs don’t cover to the levels for them to get to a major exchange. Their deadline will be in Sep 04 in my opinion. Don’t be surprised if we creep up into the dollars by then. We should be entering the pennies in less than a few days in my opinion.

Since I do think that we are going to the AMEX, I think that the MMs are asking for Urban to give them a chance to cover by going to the OTCBB first because people would sell along with obtaining new buyers to give the MMs a chance better cover and to re-create an orderly market to get CMKX to the $3.00 per share AMEX listing price requirement (or could be lower).

Really, as long as it’s a major exchange higher than the OTCBB, eventually it would not matter. Still, I do believe that we will crawl before we walk, then run, by first going to the OTCBB. I am very confident that the ultimate goal is not to remain on the OTCBB, but to first get there to establish that initial legitimacy.

Urban does want the MMs to cover by not destroying them. I am thinking that Urban will give the MMs a fair opportunity to cover through UCAD if they cooperate with a fair price increase for CMKX. This will too be part of the “Gentlemen’s Agreement” to the MMs.

All of this is very powerful and no doubt requires some being able to think outside the box. The above are still “theories” until proven “facts” by the company. I must say again, a special thanks to Urban, Melvin, and the rest of the CMKX TEAM. CMKX will help us all to achieve new levels of prosperity!

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

;-)
Sterling
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May God Bless All.

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Although it's related to CMKX. Now up 62%... although volume is low!

Doing more DD though!