CMKM Diamonds Inc (fka CMKX)

[dustybutler1]

Good post by Varok (from RB)...

By: Varok
04 Jul 2004, 12:01 PM EDT
Msg. 10410 of 10417
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Good afternoon,

I sit here this 4th of July holiday weekend and a beautiful weekend it is,kicking back thinking about where CMKX will be in a month?

I know many of you are probably pondering that very same question.

One thing is for certain,we have never really experienced in recent history that a pinksheet company can have volume of 2b+ shares daily average,lasting for months without movement,then Finally!! Life.. The share price spikes to (.0011) and settles back to .0004..All this time keeping everyone in suspense and having you sitting and waiting with your entry ticket (shares) ready to see the unfolding with a front-row seat, the greatest penny-show in recent history..

Think about it?

Here you have a small and until recently just another mining company with authorized shares of 500 billion and selling for months at .0001 without movement until now.

The company, "CMKX" has just the mineral rights which it laid claims to approx. 1.4 million acres of a vast diamond rush going on in Sask.Canada...Of their 1.4m acres a part of which with partners is conducting exploratory drilling to conduct feasability studies..

At the moment what is of interest is the current drilling for samples in the Carolyn Pipe and is located on the jointly owned Smeaton property with our partners..The first of 3 drilling samples have come back positive..What the other 2 will prove is yet to be announced,however,I still remain speculatively on the bullish side..

The next couple of weeks will tell all and where we stand as shareholders and the direction of the company should become quite clear..


The events that brought us to this moment is beyond what can be expected from a pinksheet company who's not obligated to file,suddenly hires a law firm,a "Who's Who" of legal muscle on corporate compliance and is conducting an audit with a certain amount of secrecy and rightfully so..

This law firm is a big deal..


A considerable amount time has been given to theories on what is eventually to be the outcome for us shareholders and CMKX...I put shareholders first for a reason,because we shareholders are a force,not so much in way of voting on a issue,but just in our numbers,which is strengh in numbers...We have been buying shares from .0001 and probably accumulated among us in the tune and this is my guess,between 10-20 billion shares held by us..

So what is best for us sharesholders?

Well,just look at the close this past Friday .0004 and you will see that shareholders have already gain considerable share price appreciation..So far CMKX is delivering and then some.After a long (months) lull in trading,we have gain over 400%..

So one has to ask, what is a fair price of 1 share of CMKX stock?

We know the company has 500b shares authorized and the O/S is questionable at best so lacking official filings,we will put up all 500b as O/S.

It's been noted that the Urban Cavasant and consortium is a majority holder..Now, majority holder can mean anything from 51% on up and in this session we will work with 51% of authorized shares, giving them 255b..


With respect to what the worth is,from an investment point by shareholders it's difficult,but from CMKX point of view is rather quite simple..

The Carolyn Pipe's positive find, located on the jointly owned Smeaton property is the current strategy in play..Just this one mine and being jointly owned is the most convient spinoff of shareholders and the rest of the 1.4 acres under a newly IPO or let it sit forever for future Casavant adventures..

Scenario:
UC sells the above parcel to one of the partners..Remember his consortium of 51% majority of CMKX..During this parley of what is it worth will be a key factor and determins the return on your investment..First an official worth of the strike must be realized,but for this session or working model, 50 billion dollars for a period of 15 years..The 15 years is on the length of a producing mine?


If the Smeaton property is positive and does have the potential of 50 billion dollars (my figure),then we'll use this figure for the spinoff..First, let me say that I am in the camp that UC will do right by shareholders and spinning us off through a buyout structured share exchange can be very promising.

Remember our partners?Well, these folks and CMKX now have the potential to launch a 200B dollar diamond enterprise.Of course, this is all dependent on the strength of the core samples and so far shows promise from one return.

Lets say the whole play is worth 200b and CMKX's 1/4 share is 50B..

The naked shorting position is an MM problem..Shareholders get effected from the NS in the depressed share price for all these months..Now to clean this mess up the most expeditiously, UC needs to account for shareholders and an accounting of shares held by shareholders...How the MMs will correct the numbers (NS) will probably come down to a compromise and shareholders eventually won't see the results or even become effected..UC needs the MMs if the company decides to stay on the OTCBB exchange,but the AMEX will be floor registered brokers who create the markets through the index weighted formula according to the market value of each security (market cap)..The rules although less stringent than the NYSE, but considerably better than none at all..

If UC takes the company private he could simply make a tender offer at .05 per share and he's out only 1 billion dollars based on 10-20 billion shares held by shareholders..These figures are mine and just for discussion purposes.

For UC to scrape together 1 billion or even 2b dollars if he decides on .10 per share,is a small price to pay if the find is minable..For us shareholders means the biggest greatest return on investment yet..Many here own millions of shares and will do fine..

So why do we keep hearing $1.00 per share or even .50?It doesn't make sense from UC's standpoint to offer anything higher than a nickle per share..I will accept any offer regardless where it moves from Friday as long as it's up....Probably some will want more and all the hyperbolies and over reactions about the huge potential will certainly set a few back feeling "enough is not enough"..Talk of wealth in no doubt will blind a few,but at this price .0004 you have already gained extremely well..


So we shareholders have been bought off at .05 and UC now owns the company,but wait..UC and his partners decide to launch an IPO, the "Smeaton property",a new symbol and company...A tender offer option can include the above through a share exchange program and you get on the new IPO launch..

The new IPO launch is for the AMEX exchange..A whole new coporation and from a business standpoint,the partners are operating a mine under one entity..Rather than the others having each their own mine, we can share in this venture for a growth oriented investment that can only be a win win for all..The company gets badly needed capital through the issuance of the IPO, we as shareholders got bought-off and were given a tender offer.Can you argue with that..


It gets much more complicated than this,but to realize anything higher than .05 per share doesn't make a whole lot of sense,but then anything can have in pennies..

So stick to your plan,but keep it realistic and use a conservative method for analyzing this issue..If you don't have your holdings already running on free shares,you may want to take profits..Holding 5 million free shares at .05 or .10 tender offer = 500k dollars is still a very nice return..Don't let your emotions get the best of you,keep it rational..


One thing for certain, this is going to be one great pennyplay..

Happy 4th and have a great weekend..


Varok

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