CMKM Diamonds Inc. (fka CMKX)

[Archangel]

a positive, yet balanced view of CMKX....and the potential all posters on this board realize CMKX has

By: schmedrick
17 Jun 2004, 10:09 PM EDT
Msg. 309867 of 317223
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**** CMKX Analysis Update ****

Overall it was a pretty good day today, we had two choices, the MM's could have run it big or they could have stayed in the corner swinging, and we all know what they chose to do. This should come as no surprise because if they are covering, and I believe they are, then they will cover at the lowest point they can and start to move up when the lower level of stock become exhausted. The volume today was about 60% of what our big days have been, and the price actually went up, gee, imagine that.

Based on the the PR we got last night, it would be more than fair to assume the MM's have firmly gotten the message, but I believe they knew it was coming about two weeks ago or more. I think they played around with this stock for the last two weeks and made money going up and down. By reading the language in the PR last night it would probably also be fair to assume that UC is getting more than a little irritated with these guys and decided to sick Roger on them, big time, and that is just what he did.

Now, assuming that Roger is competent, and there's no question in my mind that he is, the MM's know the jig is up on this stock, and they need to start making good, and I believe that is exactly what we're seeing now. Roughly as ZenInvestor32 had put it "a slow and orchestrated covering is happening", I believe Zen hit the nail right on the head. We will need a couple more days of trading to be sure the accumulation by the MM's will continue, but what we should start seeing is the stock gaining strength in price while volume decreases. This may sound counter intuitive but if you think about it, you slowly start to filter out all the volume the MM's are generating by covers and whatnot, and we are pretty much left with the majority of trades as buys from retail and/or possibly larger investors.

In addition to that, if the MM's know they are going to get hammered sooner or later and they are still very short, they will continue to drive the price up themselves because there is simply no more stock to be had at these levels. Once we can confirm this is indeed what is happening, then you will see the true beginning of a powerful short squeeze. I believe we are already seeing the beginning because it's up from .0001 and steadily gaining strength. Eventually it will begin to rapidly accelerate depending on how short they are, how much time they have left before they get called on the carpet, and which one of them reaches their panic levels. If everything comes together properly and the MM's do start to hit their panic levels, this thing will really begin to move in a hurry, but everything has to happen in the right sequence. So far it's looking like it is.

I listened to Joel's interviews the last few days, and this man is very articulate, knowledgeable and well spoken in public forums, IMO, the guy is a Pro. He knows this business, and he knows what the potential of CMKX is. The arguments that Joel makes are so clear and definitive, I'd like to see anyone challenge what he said as preposterous. UC has mineral rights to 1.4 million acres surrounding DeBeers, and DeBeers has proven the claims they have contain diamonds, and their claims are mineable. That alone should tell all of us that UC has pretty much cornered the market in Fort ala Corne, it's simply a law of averages, possession is 9/10 of the law. Joel was exactly right in almost everything he said, although I have some disagreements in his comparison of CMKX to KAI's stock price to ours because the O/S of KAI is far lower than ours, but Joel was simply making a point that KAI has dug nothing out of the ground and look at their stock price compared to ours, and he's absolutely right about that point.

The other thing I noticed today was the 8-K filed by UCAD, it is interesting to me that they failed to mention who their new accountants are. Typically but not always, when a company files an 8-K releasing their accountants, they also mention who their new accountants are going to be. A little bit of speculation could be added in here, UCAD has the same TA as CMKX, and there were the JV meetings going on up in Canada on the 16th. We know the majority of the players involved in the JV meetings, but we don't know if there were more than was mentioned, it's possible there were more and we didn't hear about them. If one were to reach out and speculate a little bit here, you could piece together a merger between CMKX and UCAD, it is fairly possible that UCAD's new accountant will be the same accountant as CMKX, wouldn't that be interesting?

And last, I'm going to get on my soapbox again and reiterate how important I think it is that we have Edwards & Angell on board. It appears that there is a lot of work to be done on the company's compliance to become fully reporting and more importantly the share structure. However, given the JV meetings happening this week, and what Joel had mentioned about the size of our claims, and us surrounding DeBeers, I still firmly believe that Roger was brought in for more than just to take the company to another exchange. The most logical choice from here would be the OTCBB however, notice in all of the PR's that have been released, there has never been any mention of what exchange they are talking about. Yes I know Melvin has talked about the OTCBB but remember, Melvin has also said that he doesn't know everything that is going on. Again, the most logical choice is the OTCBB, but there is no conclusive evidence to support it as of yet. A higher exchange is still not out of the question here.

These are just my personal thoughts and opinions.

Good Luck to Everybody, it should be getting more and more interesting every day from here on out!



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