This from sterling.****************************
From Sterling:
By: stervc
20 Jul 2004, 05:34 PM EDT
Msg. 47359 of 47466
(This msg. is a reply to 43215 by stervc.)
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CMKX-The MMs Double Short to Double Cover...
(Original Post 
http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=43215
The Market Makers (MMs) will not let CMKX achieve some major runs of sustainment until they Double Short to Double Cover in my opinion. The MMs may not win, but they won’t lose either. They must create a second set of naked short inventory above and beyond the first set originally created to trade parallel each other at a minimum. The MMs must match the sells of the original naked short to make this happen with the second set. This is why we are seeing so much volume going through at the ask as if the MMs are on a mission. That’s because they are and time is not on their side too. The volume is even more for the double shorting to match the recent buying of further naked shorted shares.
Here’s how the MMs will cover in my opinion to explain the huge volume with no movement. Let’s say that the naked short position is at 500,000,000,000 shares, which later will be 1 trillion. Let’s say that they originally naked shorted CMKX at an average price as indicated below:
100,000,000,000 x .05 = $5,000,000,000
100,000,000,000 x .04 = $4,000,000,000
100,000,000,000 x .03 = $3,000,000,000
100,000,000,000 x .02 = $2,000,000,000
100,000,000,000 x .01 = $1,000,000,000
These 500,000,000,000 shares are shares that equate to $15,000,000,000 of pure profit because these are naked shorted shares that did not exist that were made to exist when the MMs sold them to you and CUSIP numbers were assigned to each naked shorted share created. This is like the MMs creating $15,000,000,000 out of thin air at the expense o the company because when sold, they are absorbed into the float to create enhanced dilution unless bought back from the MMs to cover.
The MMs would need to put back the amount of profits to wash out the transaction for the naked short position. This means that they will have to get those naked shorted shares out of circulation. This means that they are going to have to capture those fake or counterfeit shares that were transformed into real shares with the assigning of a CUSIP number by increasing the bid to a price high enough to entice us to sell so they could capture our naked short shares to make them cease to exist to equate to make appear a situation as if nothing ever happening.
The amount that they need to put back to cover the naked shorted position is valued at $15,000,000,000. So now the thought would be for the MMs to see how they would be able to get $15,000,000,000 since they already have spent this long ago because they thought that CMKX was like most of your penny stocks and would not succeed in their long term business plans. This first naked shorted position of 500,000,000,000 shares equates to $15,000,000,000 that we will call the Fist Set of Inventory for a better understanding.
The MMs would need to “double short” to “double cover” to make this happen. This means that they will short CMKX for a second time to position themselves to do a double cover at much higher prices to where they not only break-even, but possibly make a profit. This is done by the MMs creating a Second Set of Inventory to use as MM leverage.
To do this they will need to make $15,000,000,000 to break-even and account for 500,000,000,000 shares of CMKX. They could have started this process at .0007 cent(s). This means that they paid $250,000,000 per the amount below to come up with the 500,000,000,000 shares:
100,000,000,000 x .0007 = $70,000,000
100,000,000,000 x .0006 = $60,000,000
100,000,000,000 x .0005 = $50,000,000
100,000,000,000 x .0004 = $40,000,000
100,000,000,000 x .0003 = $30,000,000
Again, this means that the MMs paid $250,000,000 to get a Second Set of Inventory of naked short shares to equate to their First Set of Inventory of naked short shares. Each set is 500,000,000,000 shares mirroring each other in trade. The 2 sets totaled equates to 1 trillion shares naked shorted. This is how they will “double short” to “double cover” to fix this situation.
The initial $15,000,000,000 gained from the First Set of Inventory of naked shorted shares was pure profit and the MMs are only tapping into their profits of money they never had anyway before they naked shorted to cover. So the $15,000,000,000 - $250,000,000 = $14,750,000,000 of profit after creating their Second Set of Inventory.
The MMs must get 500,000,000,000 to use as leverage to maintain their profits or at least break even. To get these shares, they create a Second Set of Inventory for 500,000,000,000 shares back to themselves. This is the same concept as to when the sold us shareholders 500,000,000,000 shares that did not exist. They are just selling them to themselves now with assigned CUSIP numbers making them real shares with real value that is in their hands now when they sell. This is a naked short position that they have now created for themselves that they can control when to cover.
Since there are 2 sets of inventory of naked short shares, this means that there are 2 sets of covering that must at least mirror themselves during the covering process. The first set of inventory for covering will be the MMs trying to get us as shareholders to sell back our 500,000,000,000 naked short shares to get them out of circulation for existing by increasing the bid to entice us to sell at the prices that are attractive to our desires for profits. When we sell, they cover naked short shares from the first set of inventory.
The second set of inventory for covering will be the MMs simply selling back to themselves 500,000,000,000 naked short shares to get those out of circulation for existing by holding and selling any shares before or lower than any of the shares sold from the first set of inventory. When they sell, they cover naked short shares from the second set of inventory. Let’s further explain how this would work…
To do this, the MMs will establish what I will call Levels of Covering. To keep things simple, let’s arbitrarily pick 5 Levels of Covering; .10 cents, .20 cents, .30 cents, .40 cents, and .50 cents. Remember, the primary goal is to get the 500,000,000,000 shares out of circulation out of our hands so they could make them go away.
They will place their second set of inventory of 500,000,000,000 at a limit to sell at .10 cents. They will now raise the price of CMKX up to .10 cents. Every share that we sell all the way up to .10 cents gets deducted from the second set of inventory because the MMs will sell the equivalent amount of shares sold to capture the lost of money used that they had to pay for our shares when we sold. Example:
Let’s say that when they first attempted to entice us to sell to get shares to cover for the first set on inventory, they only got 100,000,000,000 naked short out of circulation. This means that the most that the MMs could have paid for those shares were:
100,000,000,000 x .10 cents = $10,000,000,000
This means that they will now sell 100,000,000,000 from the second set of inventory at .10 cents back to themselves to give them back the $10,000,000,000 they spent to pay for the amount it cost for buying our 100,000,000,000 share from the first set of inventory.
This was an even wash of 100,000,000,000 naked short shares removed from both sets of inventory totaling 200,000,000,000 naked shorted shares. This reduces the 1 trillion shares naked shorted down to 800,000,000,000 shares needing to be covered. This leaves 400,000,000,000 for each set of inventory remaining to be covered.
This process will repeat at each level of the 5 levels of covering to next include the .20 cents, .30 cents, .40 cents, and .50 cents per 100,000,000,000 shares at each level. The numbers could fluctuate for what could actually transpire. The point to see is that the MMs will double cover and sell whenever we sell to make sure they at least breakeven to wash out the money that would be spent for running up the price to entice selling by increasing the bid. Some shareholders will hold and the resolution for that will take another post to explain this process. (I could explain it faster in Paltalk or on the phone.)
Again, please keep in mind, the MMs didn’t spend money to get any of the first set of inventory of naked short shares. They created these shares out of nowhere to make them exist electronically by assigning them CUSIP numbers to make them manifest in the brokerage accounts. All of this was pure profit from using our money to sell us the fictitiously created shares. This is when during the creation of the first set of inventory; the naked short shares went to the shareholders while the profits went to the MMs.
To further keep in mind, the MMs didn’t spend money to get any of the second set of inventory of naked short shares. They created these shares too out of nowhere to make them exist electronically by assigning them CUSIP numbers to make them manifest in their brokerage accounts this time. All of this was pure profit too from using no money at all to simply fictitiously create shares. This is when during the creation of the second set of inventory; the naked short shares went to the MMs this time along with the profits going to the MMs too.
So when you are wondering why we are getting all of this volume and no movement, understand that this is something that could be happening to keep the MMs from either going out of business, facing multiple class action law suits, or just simply being out of lots of money. This is how the MMs might not always win, but they won’t lose either. They will seldom ever lose.
They are here to create and maintain an orderly market and sometimes naked shorting shares was a technique used to help to establish more liquidity to a stock until enough volume was generated for that stock to trade in an orderly fashion. It has grown to another venue to harness the greed for money and power that has grown to a level to where the rich gets richer and the poor gets poorer. There is much more to this story that really should not be discussed on these message boards.
For those who are wondering where was all the volume to show 1 trillion shares traded, read the post below: http://www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=40793
These were only my opinions that I created as food for thought since many were hungry for an understanding. I hope their minds are full from this meal.
This is another thought/opinion as to what could explain the reasons for all of the volume while slowly downward trending. I think that we will soon see the reasons why Urban and Roger Glenn had come into the lives of each other for the benefit of all shareholders!
All is well! http://www.sterlingsclass.com/
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