quote:

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Originally posted by HarryHar:
DO NOT SELL DO NOT SELL DO NOT SELL!!!

Should we start a thread that says do not sell CMKX?

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[This message has been edited by VNGNTN1 (edited July 18, 2004).]

Stock to Watch Update

CMKM Diamonds, Inc. [ CMKX ]

Last Tuesday, July 13th The Green Baron profiled CMKX as a "Stock to Watch". We strongly advised everyone to place CMKX on radar screens and to watch for new developments in the days ahead. We also stated we would send a representative of Evergreen Marketing, Inc. to Denver, Colorado to meet personally with the Chief Executive Officer and other interested parties in order to collect and confirm information.

We are pleased to announce that our representative was able to meet with CEO Urban Casavant and that we found the meetings both insightful and informative. Our representative was successful in securing a verbal agreement for a Green Baron CEO Webcast with Urban Casavant in the very near future. Evergreen Marketing will be submitting a list of questions for the webcast to CMKX legal counsel for approval.

In last week's "Stock to Watch" alert, we stated that, "One rumor of particular interest involves a...tender offer or dividend in the works". Although we used this as an example to demonstrate the potential upside in the stock, today, Sunday July 18th, CMKX seemed to confirm the company is heading in that direction by releasing the following announcement:

CMKX Diamonds, Inc Announces Dividend to Shareholders of Record Date and Option Agreement.

DENVER --(BUSINESS WIRE)--July 18, 2004--CMKM Diamonds Inc. (Pink Sheets:CMKX) is pleased to have reached a purchase agreement with U.S. Canadian Minerals, Inc. will be purchasing 5% of all mineral claims held by CMKM Diamonds, Inc. in exchange for 7.5 million shares of UCAD. CMKM Diamonds, Inc. will later issue these shares to all shareholders of record on August 20, 2004. Read Full Story

This week we recommend to Green Baron members monitoring CMKX to watch for additional announcements by CMKX, Level II trends [particularly JEFF] and our broadcast date for CMKX's Green Baron CEO Webcast with Urban Casavant. All Green Baron CEO webcasts can be accessed by utilizing the "CEO Webcast" links on our website.

The Green Baron will continue to conduct our due diligence on all aspects of CMKX and to keep our members informed as events unfold and additional information becomes available. We would also like to inform our members that Evergreen Marketing, Inc. [parent company of The Green Baron Investors Society] will most likely increase our holdings of CMKX in the days ahead. Since events for CMKM Diamonds, Inc. may unfold quickly in the days ahead, we urge our members to monitor developments closely, watch for future Green Baron Reports with CMKX Updates and Alerts, as well as to visit our website www.TheGreenBaron.com daily for important updates.

1.) On or before the 20th of August we will all
know what the o/s count is based on the number of shares we are each issued of UCAD.

2.) The number of shares of UCAD per one
million shares of CMKX (assuming 400B o/s)
is 18.75.

7.5M/400B = 0.00001875 UCAD shares per CMKX shares
1,000,000 CMKX shares = 18.75 UCAD Shares
18.75 UCAD shares = $63.75 in today's dollars

3.) If the O/S is less than 400B then we
are all in much better shape...

The value per share (assuming 400B o/s)
is $510M/400B = .001275 roughly 3x
where the pps is currently.

(all of this is using worst case senario
numbers.)

4.) As Van pointed out the Book value has
essentially also been established. If 5%
of "all" claims as stated in the PR is being
purchased for $25.5M then the intrinsic value
can be assumed to be $510M.

This is not to say that the company is not
worth more. This is the value based on the
value placed on the claims sold.

Unfortunately we cannot put a P/E of 10 or 20 on the value at this point because we
do not have any earnings. IMHO

5.) As of May 18th 2004 UCAD had 7.7 Million
common shares outstanding. Initially this
might mean something but eventually this
can be diluted with the issuance of more shares...

UCAD has 100M a/s with a reverse 125:1
which occurred at the beginning of the
year...

quote:

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Originally posted by VNGNTN1:
I am watching the opening signal on UCAD Monday. There will be a message there.
= = = =
NOAH
There is a mathmatical formula we should be able to apply to ratio of UCAD & CMKX that reflects how high CMKX will go ? Need some help with logic.
= = = =
VAN

[This message has been edited by VNGNTN1 (edited July 18, 2004).]

[This message has been edited by VNGNTN1 (edited July 18, 2004).]

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Van, I'm not sure what equation you are looking for. How high CMKX will go is relative only to supply and demand.

If you're looking for an evaluation equation, it would seem that UCAD believes that 5% of CMKX mineral rights equals 7.5 million shares of UCAD @ $3.40 per share.

That equation would be:

If "x" equals UCAD evaluation of CMKX then:

.05x = 7,500,000 times $3.40 ($25,500,000)
X = $510,000,000 (UCAD's evaluation of CMKX)

Of course we won't know share value until we know the OS.

Don't know if that's what you're looking for or not.

Arend loses traction by 150 feet and clicks it off. Tommy Johnson Jr. with a good looking pass in the heat of the day. He has low E.T. of the session and will have lane choice over Force in the next round.
NHRA
_________________________________________________________________
Jeff's out of the race.Too bad,would have been racing John Force if he could have won.
Racing John Force would have even got alot more of attention for CMKX.

quote:

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Originally posted by noahltl:

Van, I'm not sure what equation you are looking for. How high CMKX will go is relative only to supply and demand.

If you're looking for an evaluation equation, it would seem that UCAD believes that 5% of CMKX mineral rights equals 7.5 million shares of UCAD @ $3.40 per share.

That equation would be:

If "x" equals UCAD evaluation of CMKX then:

.05x = 7,500,000 times $3.40 ($25,500,000)
X = $510,000,000 (UCAD's evaluation of CMKX)

Of course we won't know share value until we know the OS.

Don't know if that's what you're looking for or not.

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quote:

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Originally posted by booboo:
This news will make for a good short play Monday.

My predications: opens at .0006 moves up to .0008 closed at .0005.
People will start locking in profits right around lunch time.

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quote:

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Originally posted by rivercity:
just got through reading pr,AMAZING,UC JUST MIGHT PULL THIS OFF...pay date for dividend is aug. 20. does this not coincide with dateline story, i believe termed "stockgate".anyone know? i'm still checking.AMAZING, this will put a tremendous amount pressure on shorts.... already put my order in for 1mil @.oooo6. i think uc has gottem' by the gonads and boy are they going to pay.........rivercity

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No, the paydate is NOT the 20th. There are two dates when talking about a dividend. The date by which you must be a registered shareholder of the company, and then the payout date. These are never the same.

The 20th is the date your name must be in the books to be eligable for the dividend. The payout date will be determined later, which it even states in the PR.

Posted by: zeninvestor32
In reply to: None Date:7/18/2004 8:29:17 PM
Post #of 55571

WHERE TO FROM HERE?

I will reiterate my earlier feelings. The market makers likely have clients (probably some very large hedge funds) who have now been served an official notice that August 20 is the first pain threshhold. This gives the market makers about 30 days to work their magic. These guys are pros. Their job now for their clients is to help their clients cover at the lowest price possible. They will now IMO control the ebb and flow of trading to facilitate this in the best way possible for their clients (additionally the MMs themselves are probably a bit worried about THEIR butts if this thing spirals out of control).

Accordingly, I expect still a lot of monkey business before we start seeing real pops. Agenda #1 from the MMs will IMO be to get the market to believe this news was "no big deal" and thus bait shareholders into selling. The bashing online will likely continue (albeit significantly weakened). I don't expect they will hold it down too long though since they know that literally any day OS could be realized and if it's low enough, it will put a sizable nail in their coffin. My guess is that Roger and Urban have many other signficant pieces of information that will "nudge" the market makers in the right direction should they try to stall out anything too long.

First area of interest will probably be .0005. Could be a 67% gain for many that bought at .0003 and a 400% gain returned to those that bought at .0001. I look for them to work that area as best they can. Next signficant area will obviously be .001 to .0012. A return to this area now puts EVERYONE that has bought in the last 60 days in the green. Many will want to take profits. TA "experts" will claim there will be a retracement (and there may be but only if the shorts decide it will be worth the risk). And many that bought on the recent downturn will want to lock in profits. Depending on how much more information is available to the public, there may be a signficant selloff at .001 simply because many people will want to lock in gains and are still in a "too good to be true" mentality. I look for them to test .001 considerably and possibly even try another rundown back to .0005. We'll see. Their time is limited. They just may not be able to do this.

After that, I have no idea how this will work. This is truly the first time I've ever seen a situation like this develop and I have no idea what to expect. Even the above is just guesswork. For all I know, we open at .001 tomorrow and never look back. But honestly, I expect the short position and MMs will act like the pros they are and work these next 30 days with an aggressive intensity to help their clients (and themselves) as best they can.

The market makers have one small advantage in this. Our fear and impatience just as always has been the case. Let's take someone that owns 10 million shares. Let's say this jumps to .005 next week. Well, hey, that's 50 grand!! Now let's say the MMs (who carefully monitor money flow and know precisely when buying has dipped and they can make a run) decide to drop it. Maybe even back down to .001. OH NO!!! My $50k is now $10k!! This feels terrible. But now when the stock eventually returns to .005, this shareholder is MUCH more in a frame of mind to "take 1/2 off the table just to be safe".

Ok, now let's ratchet the stakes up a bit. Let's say this thing gets to 5 cents! Now a shareholder with 10 million shares has 500 GRAND!!!! Buying momentarily dips, the MMs jump in and tank it back to a penny. OH MY GOD!!! MY 500 GRAND IS NOW 100 GRAND, OH PLEASE OH PLEASE GET BACK TO JUST 5 CENTS SO I CAN SELL. Do you see how this works? Do you see what is ahead?

The last 45 days have tested everyone's nerves. As the stakes increase, expect to be tested far greater than ever before. Right now, my guess is the MMs are mapping out their strategy. Whether it works or not, even they won't know. But they surely have a strategy IMO. One slight wrench in their plan of course is that more news from Urban/Roger could come at any minute. In fact, I expect it WILL come ... as "prods" and "pushes" are necessary to keep the MMs in line.

I personally don't expect much this week as I believe this first level of .0005 to .001 must be toyed with to see what's available here. But that's a full week out of the next 30 days that will be gone. Things should start picking up the pace after that IMO.

I'm excited. This will be fascinating. Today's PR IMO was truly the beginning. I believe this runs so much deeper than most anyone expects. The naked shorters literally finally got caught with their hand in a very serious cookie jar IMO. The penalty may take away a very, very, very significant percent of their profits through naked shorting over the past 8 years or so. As I said in an earlier post last week, I believe when this blows open, there will be a massive redistribution of wealth. I still believe that.

Z

As always, these are my personal opinions.

As for the valuation theories, I post other peoples opinions when I see what I think is a good one, but not too often do I post my own feelings, but here goes one on how I 'feel' right now. You may take it as bashing or pumping, but it is just my opinion as things stand right now.

I believe that this dividend is a 'paper shuffle' between UCAD and CMKX, which really means a shuffle from Urban's right hand to his left. It's design is to put the MM's in the box, and force them to reveal their hands, and Urban didn't have to put up a dime of cash to make this happen. He has played it brilliantly. Now the MM's have to either pay up for the shares of UCAD, or buy our shares up cheap to cut their losses.

Are there really any naked shorts out there? Only the MM'x and Urban know for sure. Urban knows how many shares are outstanding and how many the company owns. If there weren't a ton of naked shorts out there, what would be the use in paying this dividend to shareholders. Think about it, why would he want to just give us that money?

Personally, I don't think he is giving us anything. I have believed for a long time that he bought up all of the authorized outstanding shares for the company, while they were at .0001. If the company holds all of the OS that's authorized, the dividend will be paid directly to CMKX and he won't have to give us a dime's worth. He is going to let the MM's pony up that amount.