CMKM Diamonds Inc (fka CMKX)

[dustybutler1]

Tender Offer might be in the Works (An interesting read) from RB:

By Holyguy7

I got to thinking about why CMKX price really has not moved at all for the last month. It spiked up early in June and leveled off at .0004 and .0005. It has stayed at that level now for a few weeks now.

It seems fairly apparent that there is a big short on the stock. The MMs know this. All investors know this. Urban knows this. Roger Glenn knows this.

Interest of the stock has just increased over the past month ever since Roger Glenn got involved. Personally, I would not have touched this stock if Roger Glenn was not involved. I purchased after he got involved because it proved to me that the company was serious about solving their problems.

The MMs know that they have been beaten by now. They know if that they allow people to continue to accumulate shares of stock at these low levels that they would just be creating a bigger problem for them in the future. Why are they not letting the stock move up in price? Why not allow the stock to move up to .0015 and keep it there so that some people would sell off with a good profit and, thus, reduce down there O/S problem that they created by naked shorting?

There is a possibility that the MMs might have struck a deal with CMKX for some kind of a settlement. I remember hearing a rumor a while back (2 weeks ago) that NITE approached Glenn Rogers with some kind of settlement. There is also a rumor that CMKX is getting ready to change to a new CUSIP number.

I think there might be a settlement in the way of somewhere in the neighborhood of .50 per share. There are several advantages to this.

1. The shareholders become wealthy overnight.
2. The shorts immediately get covered.
3. The MMs will only have to pay out in the Billions rather than in the Trillions to cover.

The reason I think that this might be the case is because I believe it might be next to impossible for the shorts to truly cover completely for MANY YEARS. Think about this for a minute. If it is true that there is only 5 Billion (or so) outstanding shares and the naked shorts are close to 400-500 Billion like some suspect then it would take a long time and perhaps they might never completely cover from their shorts.

Why do I say that? Well, I own 62 Million shares. When the share price gets to, say, 50 cents I might sell off 1 Million and keep the rest for later. After all, I don't want to pay Capital Gains Tax on all 62 Million shares in one year do I? Well, others are thinking the same thing as well. WillyWizard has, at last count, over 823 Million shares. Will he sell them all at once? Others have somewhere in between and nobody would probably sell them all at once especially knowing that we more than recouped the cost of our initial investment many times over with only a fraction of our shares. Plus, many of us are going to invest in the future of CMKX because we all know they have the best mineral claims in the world. Why not just ride it on up? Because of this, I don't think the shorts will EVER be able to cover. They know not enough investors are going to sell to get the outstanding shares down to the 5 Billion they need. They will always be short while the price continues to climb higher and higher and higher. Perhaps close to $100 per share. At this point, there is no way they could afford to pay back the shorts. Do you understand what I am saying here?

A more likely scenario is this:

1. We receive the tender off for .50 a share.
2. Price of CMKX is now 50 cents a share mostly paid for by the MMs who are covering their shorts.
3. Urban and Rogers would then do an IPO of a new ticker on the AMEX or NASDAQ allowing the existing CMKX shareholders the right to get in on the new ticker first. Some would then purchase in on the new company, others would take their earnings and retire. It is possible that those CMKXers that buy into the new company may NOT have to pay capital gains tax because they are in essence just converting from one Ticker to another (at say a 10/1 reverse split ratio making the new Ticker then going for $5 a share) and might get spared capital gains tax because it would be like just doing a reverse split with a new ticker.
I don't know enough about corporate law to say if my theory might work. Hey, but I think I know a corporate lawyer that may know . . .

Is this a possibility?
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Long and Strong with CMKX at 62 Million


scrapdogg
Diamond Finder


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Posts: 50
Re: Theory of a Tender Offer
« Reply #1 on: Today at 12:07am »

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I hope your right cause I really don't want to work on wednesday
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Mr. Madison, what you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it.


KiNGoFBLiNG
Dr. Of Diamonds


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" To Da Moon "





Posts: 188
Re: Theory of a Tender Offer
« Reply #2 on: Today at 12:14am »

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I hope this is right, then early retirement is in the windshield
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rlangmaid
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Posts: 45
Re: Theory of a Tender Offer
« Reply #3 on: Today at 08:00am »

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out of curiosity: has anyone ever experienced a tender offer before?
« Last Edit: Today at 10:05am by rlangmaid » Logged

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jimt
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Re: Theory of a Tender Offer
« Reply #4 on: Today at 09:09am »

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To deal with the naked shorts, all UC needs to do is declare a dividend for .50 and you'd see the stock go parabolic to hit that level.

I don't understand why anyone would think UC would make any sort of deal with the MMs under any circumstance. First, it is likely illegal and a violation of SEC rules and second, these are the same people that have effectively tried to bankrupt his company.

As such, what possible reason would UC have for feeling any remorse toward them?

Declaring a dividend would have the same effect as a tender offer, though CMKX holders would still own their stock and have a choice to either cash out some or all of it and maintatin the rest.

Thoughts anyone?
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Sam
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Re: Theory of a Tender Offer
« Reply #5 on: Today at 09:17am »

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I have gone through a tender offer with a small co called American sensor about 10 years ago.. Made out ok..
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rlangmaid
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Re: Theory of a Tender Offer
« Reply #6 on: Today at 10:06am »

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Sam, were you able to reitre? Or at least pay off the house and cars?
TIA
Robin


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