CMKM Diamonds Inc. (fka CMKX)

[janice shell]

Mr. Glenn stated in a previous PR, "We have been retained by the company to resolve the problems it has been facing, and we expect to devote significant efforts immediately toward that goal. The company has advised us that it is dedicated to complying fully with all requirements on it, and we are pleased to act as counsel to it on that basis."

I'm not sure that too much should be inferred from Glenn's supposed statement. At the time he "made" it, he was apparently still on vacation. There's nothing unusual about companies putting words in the mouth of an adviser, though I don't think it's a good policy. Frankly, I don't think Glenn himself would have alluded to any "problems" without specifying what they were. He goes on to say:

The company has advised us that it is dedicated to complying fully with all requirements on it, and we are pleased to act as counsel to it on that basis.

I take that to mean that the company intends to apply for relisting on the OTCBB, as it has clearly said. Currently it isn't subject to any filing "requirements", as it's a Pinkie.

Also if you have any "skeletons in the closet" regarding Edwards and Angell or Mr. Glenn, I would like to see that.

No skeletons.

Again, my only CMKM DD is reading all PRs published in the past 2 years, StockWatch articles, StockPatrol articles, corporate filings in Nevada, etc.

That's pretty much all that's out there. MTEI was easier to research because it was a reporting company, and so had left a significant paper trail. We Nasty Bashers (though most people hadn't yet begun to use the word back then) had three significant breaks:

1. Jack Uselton, the CEO, had presented himself as an experienced oil man, knowledgeable in all aspects of oil and gas drilling. As it turned out, he'd never really been anything but a roustabout. That, of course, was a major red flag.

2. We also had help from a guy who worked for the West Virgina Geological Survey, who was able to tell us quite a lot about the properties in question, and about the prospects for a successful strike.

3. After the company was hit with the SEC trading suspension, and subsequently closed its doors, Marc Tow (the "financier") was for some reason willing to talk to me and one other person. I can't imagine why; it certainly didn't do him any good.

I am speculating that Mr. Glenn would not have accepted a lowly Pink Sheet company unless they had hard evidence of CMKM's intrinsic value.

I'm not. Given that the only hard information CMKX has about the value of its claims comes from the initial results of the core drilling, Glenn has no idea what the company's intrinsic value is. As I've said before, I think he was hired for two reasons: to get the company relisted, and to find new financing for the next phase in the exploration program.

I am speculating that Mr. Glenn would not have accepted a lowly Pink Sheet company unless they had hard evidence of CMKM's intrinsic value.

Jag Media (JAGHV) has hired the famous (or notorious, depending on your point of view) John O'Quinn, who took part in one of the big tobacco suits. Several other companies alleging a Huge Naked Short position, and have also retained O'Quinn. Unfortunately things aren't going very well in court, and O'Quinn has now stated that he won't take any new cases of this kind.

So there appears to be a difference here: O'Quinn was hired to bring lawsuits; Glenn was apparently hired to get CMKX relisted. Note that Glenn isn't a litigator. My interpretation of this is that no legal action is anticipated, at least in the short term.

Oh, I almost forgot. Have you ever researched a Pink Sheet company, spent large amounts of time and energy posting on related message boards to steer people away from that Pink Sheet company, and discovered later that the Pink Sheet company was not a fraud?

I've never researched one that turned out to be a good investment over the long term, though some have been good trading vehicles. This isn't to say they were all frauds. Some were just run by total incompetents. Others existed solely to issue and sell stock; but that's not illegal. I don't ever call a company a "scam" unless that's been proven.

For Jag Media:

http://ragingbull.lycos.com/mboard/boards.cgi?board=JGMHA

For MTEI:

http://www.siliconinvestor.com/stocktalk/subject.gsp?subjectid=21501

For more on company lawsuits in general:

http://www.siliconinvestor.com/stocktalk/subject.gsp?subjectid=28509