CMKM Diamonds Inc. (fka CMKX)

[bluediamonds]

R = RIGHTS (Nasdaq Stock Codes) & CMKXRR

RR = Two Rights? (see below)

The Fool FAQ
Stock Symbol Codes

What do the extra letters tacked on to some stock symbols mean?

Companies traded on the NYSE and AMEX are identified by unique 1 to 3 letter codes -- Nasdaq uses 4 letter codes for its companies. But sometimes you will see a forth (NYSE) or fifth (Nasdaq) letter tacked onto a stock symbol. These letters identify the issue as something other than a regular issue of common stock or capital stock. Naturally, the two markets don't use the same codes. (That would make things too easy!) Below we list the codes for Nasdaq first, followed by the NYSE and AMEX codes.


Nasdaq Stock Codes

A - Class A stock
B - Class B stock
C - Issuer qualifications exceptions*
D - New
E - Delinquent in required filings with the SEC
F - Foreign
G - First convertible bond
H - Second convertible bond, same company
I - Third convertible bond, same company
J - Voting
K - Nonvoting
L - Miscellaneous situations (depositary receipts, stubs, additional warrants, and units)
M - Fourth preferred, same company
N - Third preferred, same company
O - Second preferred, same company
P - First preferred, same company
Q - Bankruptcy Proceedings
R - Rights
S - Shares of beneficial interest
T - With warrants or with rights
U - Units
V - When issued and when distributed
W - Warrants
Y - ADR (American Depositary Receipt)
Z - Miscellaneous situations (depositary receipts, stubs, additional warrants, and units)

* The letter "C" as a fifth character in a security symbol indicates that the issuer has been granted a continuance for a limited period by Nasdaq under an exception to the qualification standards.

http://www.fool.com/FoolFAQ/FoolFAQ0036.htm

CMKX RR (On DTCC Report)

CMKX RR Hmmmmmmmmm

Author Topic: CMKX RR Hmmmmmmmmm (Read 505 times)
fishing4diamonds
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CMKX RR Hmmmmmmmmm
« Thread Started on Today at 11:11am »

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http://cfrn.net/forum/viewthread.php?tid=6587

noahltl
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posted on 4/21/2006 at 16:16 Edit Post Reply With Quote

CMKM RR Confirmed

The document now at the TF Website is from the DTCC delineating the shares held by each brokerage also confirms the Rights attached to CMKM Diamonds. This was first seen a couple of months ago at the UBS site and they said it was a mistake and had all kinds of trouble taking it down. Look in the upper left hand corner area. CMKM DIAMONDS INC. RR

http://cmkxownersgroup.com/spr%204-14-06.pdf

Noahltl
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Re: CMKX RR Hmmmmmmmmm
« Reply #13 on Today at 11:58am »

Ricky it indicates that certain rights are attached to the stock. Hoping it refers to rights to buy CIM pre-IPO. Those rights will have value in themselves.

http://forums.christiantraders.com/viewthread.php?tid=6587

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Investopedia

Rights
A security giving stockholders entitlement to purchase new shares issued by the corporation at a predetermined price (normally less than the current market price) in proportion to the number of shares already owned. Rights are issued only for a short period of time, after which they expire.

This also known as "subscription rights" or "share purchase rights".

Renounceable Right
An offer issued by a corporation to shareholders to purchase more shares of the corporation's stock (usually at a discount). Renounceable rights have a value and can be traded.

Stockholders that have received renounceable rights have three choices of what to do with the rights. They can act on the rights and buy more shares as per the particulars of the rights issue; they can sell them on the market; or they can pass on taking advantage of their rights.

http://cmkxgroup.proboards88.com/index.cgi?board=general&action=display&thread=1145639473

stormgrey43
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Re: Our saga is about to end....Why?
« Reply #11 on Today at 2:24pm »

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Today at 12:57pm, txredneckbud wrote:OK, found this:

http://www.fool.com/FoolFAQ/FoolFAQ0036.htm

clearly indicating RIGHTS. so, is there ANYWHERE we can still see cmkm.rr?????
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Tex,

No, you can no longer find it, BUT here is visadr's post to me explaining it and it was also corroborated several times by many:
My found example:

Rights Offering: See GHI(RRR) listed on UBS site:

Note: RRR extention probably refers to "Holders would be able to purchase one share of common stock for every three rights held"

Thus, for example, in CMKMRR (RR) may refer to "Holders of CMKMRR would be able to purchase one share of common stock for every 2 rights held."

See below:

Global High Income Dollar Fund Inc. Announces Terms of Anticipated Rights Offering
Monday October 24, 4:47 pm ET

NEW YORK--(BUSINESS WIRE)--Oct. 24, 2005--Global High Income Dollar Fund Inc. (the "Fund") (NYSE: GHI - News) announced today that the Fund's Board of Directors has approved the terms of a non-transferable rights offering of additional common stock of the Fund (the "Offer").
ADVERTISEMENT

The rights offering would only commence upon the Securities and Exchange Commission's determination to make the Fund's registration statement effective and is subject to cancellation in the event that there is no longer a premium between the Fund's market price and net asset value ("NAV") or due to other adverse market conditions. Although Fund shares have traded at a premium for some time, shares of closed-end funds frequently trade at a discount to NAV. The price of the Fund's shares is determined by market factors, many of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below or above NAV.

The Fund would issue to each shareholder of record as of November 11, 2005 (the "Record Date"), one non-transferable right for each whole share of common stock held, rounded up to the nearest number of rights divisible by three. In order to be a Record Date shareholder, investors must purchase shares of the Fund by November 8, 2005. The rights would entitle holders to subscribe for additional shares of the Fund's common stock at a discount to market price. Holders would be able to purchase one share of common stock for every three rights held. The Offer would be made only by means of a prospectus to be distributed to Record Date shareholders on or about November 18, 2005.
The Offer would be made only by means of a prospectus to be distributed to Record Date shareholders on or about November 18, 2005.

Important Dates:

Record Date November 11, 2005
Expiration Date December 20, 2005

The subscription price would not be determined until the expiration of the Offer, December 20, 2005 (the "Expiration Date"), unless extended. The subscription price (the "Subscription Price") would be calculated as the greater of (i) the Fund's NAV per share on the Expiration Date or (ii) 95% of the volume weighted average share price of a share on the New York Stock Exchange on the Expiration Date and the four preceding business days.

Record Date shareholders who exercise all rights issued to them would be entitled to subscribe for additional shares at the Subscription Price pursuant to an over-subscription privilege. The Fund may, at its discretion, issue up to an additional 25% of the shares in the Offer to honor over-subscription requests if sufficient shares are not available to honor all over-subscriptions.

Shareholders who have questions regarding the Offer should contact the Information Agent for the Offer, The Altman Group Inc., Warren Antler at 1-800-780-7438, 212-400-2605 or [e-mail].

The Fund's investment adviser is UBS Global Asset Management (US) Inc., and Fund shares are traded on the New York Stock Exchange under the symbol "GHI." The Fund's primary investment objective is to achieve a high level of current income. The Fund's secondary investment objective is to seek capital appreciation. There can be no assurance that these objectives will be met.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This information would be found in the Fund's final rights offering prospectus which would be on file with the SEC when the offering commences. An investor should carefully read the Fund's final prospectus before investing.

Visadoctor

stormgrey43
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Re: Our saga is about to end....Why?
« Reply #13 on Today at 2:57pm »

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Today at 2:47pm, txredneckbud wrote:thanks storm. was that one for three talked about way back then? first i heard of it was last month or march from teh beligans and tigerpaw.
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Tex,

I used to check on the UBS Website daily after it was initially discovered. After that, it kept disappearing then reappearing weekly. Finally, UBS stopped listing all of the stock they had registered to underwrite, probably because CMKX shareholders were calling by the droves...lol.

Curious at the very minimum. No way in hell it was a type either because they spelled out the company name.

We will see it come to fruition soon imo. Jay Adobe said that info wasn't supposed to be made public at that time.
« Last Edit: Today at 2:58pm by stormgrey43 » Link to Post - Back to Top Logged


JustJanet
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Re: Our saga is about to end....Why?
« Reply #14 on Today at 3:03pm »

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I saw it there too and just checked - I didn't save a screen shot. Franko or CMKXTREME might have one. Try a PM to them.

JustJanet

http://millionaires.proboards81.com/index.cgi?board=main&action=display&thread=1147623373


EVEN MORE ON RR

Posted by: Wongyal
In reply to: bluediamonds who wrote msg# 204514 Date:4/24/2006 5:46:17 PM
Post #of 204582

Blue Diamond s when the RR first appeared on UBS, I too at first thought it mean't revoked register but then I noticed there were a bunch of other companies there that also had the RR tagged on, after DDing those companies, some I found nothing but some I found had rights given to buy other shares,none were revoked companies & that is why I believe the RR stands for renouncable rights

http://www.investorshub.com/boards/read_msg.asp?message_id=10804536

DTCC Phone Call on RR

Author Topic: DTCC Phone Call
pickleman773
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DTCC Phone Call
« Thread Started on Today at 1:43pm »

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Everyone,

The CMKM RR noted on the Security Position Reports dated 4/14/06 has had much discussion this past weekend so I decided to take a chance and call the DTCC myself and inquire. Honestly, I didn't think I would get nowhere but here is the results of my conversation:

I called the Re-Organization Dept at 800-422-0582 and spoke with a Donna Woods. She advised me to speak with Sara in the Proxy Unit and transferred me to her. Her phone number is 212-855-5191.

Sara looked up the DTCC SPR dated 4/14/06 and indicated she had no idea what RR meant so she did a 3 way call with me and the underwriting dept (X1052-they would not give me the phone number, only the extension). The underwriting dept told me that they would not release the information to me since I am not a broker. I advised them that the brokers will not assist me with this (I have ETrade) and I want to know what RR stands for since this memo has been released and I am entitled to know.

I then specifically asked the underwriter if RR stood for REVOKED REGISTRATION. The underwriter stated he cannot provide me what I am looking for but did tell me that the RR does NOT stand for revoked registration and it is in relation to a REGISTERED security.

After he told me this he became very nervous and stated I was unable to ask him any further questions.

Take it FWIW.

pickleman773

http://cmkxgroup.proboards88.com/index.cgi?board=general&action=display&thread=1145907811

tango
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Re: DTCC Phone Call
« Reply #21 on Today at 2:11pm »

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I have a friend who is a broker and asked him what RR stands for. This was his reply:

"Usually that holders would be able to purchase one share of common stock for every two rights held."



pickleman773
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Re: DTCC Phone Call
« Reply #25 on Today at 2:29pm »

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Makes you wonder. Remember on the 20th the directors were filed for CMKM in Nevada. This looks good!


Today at 2:21pm, John3339 wrote: Seriously though, it does sound like someone is setting the groundwork for CMKX to be trading again...or at least give the appearance, to scare some of the uncovered borkers into giving some thought to settling...QUICKLY.

imo
john





http://cmkxgroup.proboards88.com/index.cgi?board=general&action=display&thread=1145907811&am...

IMO, Noah's explanation that RR refers to Rights is more reasonable, especially when we take into account the fact that CMKM RR was appearing on the UBS web site.

Here is a little more to think about:

brigantine
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Re: This Post May Shed Some Light on "RR"
« Reply #1 on Apr 22, 2006, 8:59pm »

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While this is all very interesting, I do not see a connection. The information speaks of an RR message as a "type" of message, sent in response to a BR message, within a messaging system.

That is significantly different in my mind than posting an RR following a stock symbol on a relatively static web site such as the UBS discovery.

I may be wrong, but those are my thoughts.

cheers.

brigantine
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Re: This Post May Shed Some Light on "RR"
« Reply #3 on Yesterday at 8:05am »

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It was an interesting find, Joe. Very interesting and educational read.

I think that based on UBS' reaction to the discovery, it is about Rights.

We shall see.

http://cmkxgroup.proboards88.com/index.cgi?board=general&action=display&thread=1145760848

friscotrader
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Karma: 121 Re: CMKX RR (On DTCC Report)
« Reply #7 on Today at 9:21am »

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Blue, just incase you wanted the original UBS RR link
http://www.entouragemining.net/board/showthread.php?t=534

http://cmkxdiamond.proboards66.com/index.cgi?board=general1&action=display&thread=1145647438

stormcrow24
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Re: CMKX RR Hmmmmmmmmm
« Reply #8 on Apr 22, 2006, 9:10pm »

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Here is a website that links to a glossary of standardized nomenclature in World Wide investing. please note the very first definition under "R." There is no definition of "RR" as being a recognized acronym, pseudonym or any other kind of "-nym" for the term "Revoked Registration."

http://www.openoffshorebankaccountsfornonresidents.com/ZRFinancialDictionaryA-Ztermsdefinition.html

http://millionaires.proboards81.com/index.cgi?action=display&board=main&thread=1145647596&am...

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More Renouncable Rights info:

stormcrow24
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Re: CMKX RR Hmmmmmmmmm
« Reply #4 on Apr 22, 2006, 9:55am »

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More Renouncable Rights info:

Understanding Rights Issues
June 29, 2005 | By Ben McClure

Cash-strapped companies can turn to rights issues to raise money when they really need it. In these rights offerings, companies grant shareholders a chance to buy new shares at a discount to the current trading price. Let's look at how rights issue work, and what they mean for all shareholders.

Defining a Rights Issue and Why It's Used
A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. More specifically, this type of issue gives existing shareholders securities called "rights", which, well, give the shareholders the right to purchase new shares at a discount to the market price on a stated future date. The company is giving shareholders a chance to increase their exposure to the stock at a discount price.

But until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way they would trade ordinary shares. The rights issued to a shareholder have a value, thus compensating current shareholders for the future dilution of their existing shares' value.

Troubled companies typically use rights issues to pay down debt, especially when they are unable to borrow more money. But not all companies that pursue rights offerings are shaky. Some with clean balance sheets use them to fund acquisitions and growth strategies. For reassurance that it will raise the finances, a company will usually, but not always, have its rights issue underwritten by an investment bank.

How Rights Issues Work
So, how do rights issues work? The best way to explain is through an example.

Let's say you own 1,000 shares in Wobble Telecom, each of which is worth $5.50. The company is in a bit of financial trouble and sorely needs to raise cash to cover its debt obligations. Wobble therefore announces a rights offering, in which it plans to raise $30 million by issuing 10 million shares to existing investors at a price of $3 each. But this issue is a three-for-10 rights issue. In other words, for every 10 shares you hold, Wobble is offering you another three at a deeply discounted price of $3. This price is 45% less than the $5.50 price at which Wobble stock trades. (For further reading, see Understanding Stock Splits.)

As a shareholder, you essentially have three options when considering what to do in response to the rights issue. You can (1) subscribe to the rights issue in full, (2) ignore your rights or (3) sell the rights to someone else. Here we look how to pursue each option, and the possible outcomes.

1. Take up the rights to purchase in full
To take advantage of the rights issue in full, you would need to spend $3 for every Wobble share that you are entitled to under the issue. As you hold 1,000 shares, you can buy up to 300 new shares (three shares for every 10 you already own) at this discounted price of $3, giving a total price of $900.

However, while the discount on the newly issued shares is 45%, it will not stay there. The market price of Wobble shares will not be able to stay at $5.50 after the rights issue is complete. The value of each share will be diluted as a result of the increased number of shares issued. To see if the rights issue does in fact give a material discount, you need to estimate how much Wobble's share price will be diluted.

In estimating this dilution, remember that you can never know for certain the future value of your expanded holding of the shares, since it can be affected by any number of business and market factors. But the theoretical share price that will result after the rights issue is complete - which is the ex-rights share price - is possible to calculate. This price is found by dividing the total price you will have paid for all your Wobble shares by the total number of shares you will own. This is calculated as follows:

1,000 existing shares at $5.50 $5,500
300 news shares for cash at $3 $900
Value of 1,300 shares $6,400
Ex-rights value per share $4.92 ($6,400.00/1,300 shares)

So, in theory, as a result of the introduction of new shares at the deeply discounted price, the value of each of your existing shares will decline from $5.50 to $4.92. But remember, the loss on your existing shareholding is offset exactly by the gain in share value on the new rights: the new shares cost you $3, but they have a market value of $4.92. These new shares are taxed in the same year as you purchased the original shares, and carried forward to count as investment income, but there is no interest or other tax penalties charged on this carried-forward, taxable investment income.

2. Ignore the rights issue
You may not have the $900 to purchase the additional 300 shares at $3 each, so you can always let your rights expire. But this is not normally recommended. If you choose to do nothing, your shareholding will be diluted thanks to the extra shares issued.

3 Sell your rights to other investors
In some cases, rights are not transferable. These are known as "non-renounceable rights". But in most cases, your rights allow you to decide whether you want to take up the option to buy the shares or sell your rights to other investors or to the underwriter. Rights that can be traded are called "renounceable rights", and after they have been traded, the rights are known as "nil-paid rights".

To determine how much you may gain by selling the rights, you need to estimate a value on the nil-paid rights ahead of time. Again, a precise number is difficult, but you can get a rough value by taking the value of ex-rights price and subtracting the rights issue price. So, at the adjusted ex-rights price of $4.92 less $3, your nil-paid rights are worth $1.92 per share. Selling these rights will create a capital gain for you.

Be Warned
It is awfully easy for investors to get tempted by the prospect of buying discounted shares with a rights issue. But it is not always a certainty that you are getting a bargain. But besides knowing the ex-rights share price, you need to know the purpose of the additional funding before accepting or rejecting a rights issue. Be sure to look for a compelling explanation of why the rights issue and share dilution are needed as part of the recovery plan. Sure, a rights issue can offer a quick fix for a troubled balance sheet, but that doesn't necessarily mean management will address the underlying problems that weakened the balance sheet in the first place. Shareholders should be cautious.

By Ben McClure

http://millionaires.proboards81.com/index.cgi?board=main&action=display&thread=1145647596