Cal-Bay International Inc (CBYI)

[stervc]

Maninnepa, with your key CBAY views…

Your thoughts are very logical for consideration although they could be stilled viewed for thinking outside of the box. That’s fine though. Your CBAY thoughts supports a theory I posted and talked about years ago called the “Double Short” to “Double Cover” Theory. It evolves around two sets of inventories, but I will try to give y’all the short version this time though as what you posted might hold merit.

From your thoughts, maybe CBAY went from OTCBB to pink sheets and getting deregistered for a reason. This could have been part of a plan to be able to come up with the money to pay-off certain Expenses and Liabilities. This could be why there might be a covering taking place for a hedge fund from the company’s key person(s) that had naked shorted CBAY.

A covering must take place to rid the shares considering the 15 Oct 07 SEC rule for having all Failure to Delivers (FTDs) covered as in the link below:
http://www.sec.gov/rules/final/2007/34-56212.pdf

This also must be done for CBAY to be acknowledged as a viable entity with future news that I think will be released as part of the plan too if what you believe to be the situation. They must do this since all share transactions are logged within the DTC/Cede&Co. They must get their official share structure balance back to its original last OTCBB number that is on file.

From further calculation, maybe CBAY realized that the total number of shares naked shorted was over 4 billion, but under 6 billion for capturing all “legit and illegit” shares under an umbrella of an AS of 6 billion shares. These shares were needed to be captured so that the books would balance to eliminate the potential for an audit trail. So in this next example, I will use 6 billion as the amount of shares naked shorted since that’s what the Authorized Shares (AS) was increased to.

Example: If CBAY naked shorted 6 billion shares through a hedge fund all the way down to let’s say .01 per share, then this means that they sold to naked short for funds equating to no lower than the amount below:

6,000,000,000 x .01 = $60,000,000

This $60 million is the newly created “slush fund” and running balance of funds to use to cover their naked short position and to eliminate/take care of any Expenses and Liabilities. This is how they tremendously create funding for their operation.

To cover those 6 billion shares naked shorted, CBAY needs to begin buying those shares back to show that their books are clean with the impression that they always were before the 15 Oct 07 scrutinization process kicks in. All naked shorted positions are going to want to have been “officially” covered by then.

Consider now if CBAY buys back 6 billion shares at .001 per share. The amount of money spent would be as indicated below:

6,000,000,000 x .001 = $6,000,000

As you can see, $60 million - $6 million = $54 million cleared for CBAY to eliminate any existing Expenses and Liabilities to include having some change left over.

So, if this is the case as you hinted, after they finish covering such would be awesome because the OS & Float goes back to where it was upon covering except for there is much more room for growth because of how low these levels are for more room to gain.

It is a sad situation for the previous shareholders that were greatly damaged from the shorting, but the new shareholders catching this bottom should do very well, especially if they have awesome news of substance to release. The failing of CBAY down to these levels might have been all part of some major plan to succeed in the end. This is why I think it should do well and very well could get back to the pennies. This is of course some thoughts you hinted for thinking outside the box.

v/r
Sterling