CMKM Diamonds Inc. (fka CMKX)

[janice shell]

One flaw I can find is that it doesn't apply to CMKX which was never eligible for the Stock Borrow Program.

The way I understand it (forget apples) in that the original lot of shares get borrowed from the Stock Borrow Program (SBP) which then get sold through a broker to an investor. Those shares then sit in the investors account where they are borrowed and sold to another investor. This can continue indefinately though a series of brokers.

That's exactly the same as my apple analogy. The trades happen consecutively, not all at once.