News Focus
News Focus
Followers 1
Posts 50
Boards Moderated 0
Alias Born 07/09/2004

Re: None

Tuesday, 07/20/2004 10:47:38 AM

Tuesday, July 20, 2004 10:47:38 AM

Post# of 359160
Follow up post - my thinking on CMKX:

This is likely going to be a long post, sorry in advance.

I believe one of two things is going on (and one looks like it is WAY more likely).

1. The company really is dumping shares. The O/S is huge. This would explain the massive volume trading, it would explain where the money is coming from for racing/investment in CIM/etc., and it would be a huge disappointment. However, this doesn't seem to fit with what has been happening...dividends, UC being in the public, the MM behavior, etc.

2. Here's my theory, or at least something that seems logical.

First, I strongly believe that Urban has known the rough outstanding share count all along. There's no reason he shouldn't have. Let's assume that he notices large volume and downward pressure on the stock that is inexplicable. He assumes naked shorting.

If Urban could offer 'proof' of the shorting and 'proof' of value in his claims/company, he could likely find someone to finance buying up shares at .0001. My HOPE in this entire situation is that Urban purchased a TON of shares at .0001, more than the float, more than the outstanding shares.

Now, Urban goes to Roger Glenn (assuming Roger wasn't involved before it was publically announced) and shows him what he has done. Roger is motivated to come on for two reasons: 1. He formerly worked for the SEC and hates fraud like naked shorting & 2. Busting a huge naked short position intended to kill a small company will be glory for him and his firm.

So now we have Urban/CMKX with a huge inventory of naked short shares, hopefully some strong value in the company in claims or a find we don't know about yet.

There's been a poster on Ragingbull that has been pointing out (correctly IMO) that we do not want to destroy the MM's. No way is that in our best interest. We have to work with MM's as long as we are traded on any Exchange. Also, Roger/UC have this huge inventory of naked shares they want to make go away...because it doesn't benefit the company.

Rather than go through a massive drawn out fight, they offer to allow the MM's to cover. This is what I think JEFF is doing for us. This is what I think JEFF was doing last week at .0003. Otherwise, how do you explain his behavior sitting alone at the Ask selling BILLIONS AND BILLIONS of shares? If he was dumping for the company, he would try to get as much as he could. If he was naked shorting, he would also try to get as much as he could. I also believe that there is no way in **** that if JEFF is short, that he would sit there and sell 10+ billion more short shares in the last week.

This fact that the profile posted on The Green Baron specifically points out to watch JEFF's behavior...well, that seems to support this idea of JEFF controlling the price. Which is definitely explained if UC is selling huge chunks of naked shorts at preset levels - .0003 before, .0005 now.

Guess what the beneficial side effect is of this: UC bought shares at .0001. If we're selling billions at 3-5x - we are funding the company too. If we do the best we can to screw the MM's, getting it cleaned up is going to take a LONG TIME.

This also would seem to explain why the O/S has not been released. Releasing the O/S now would ruin any preset deals to allow MM's to cover, right?

The recent dividends seem to lend continued support that UC is not screwing the shareholders. Why would he just pass through $30 some million in UCAD stock to us if this was a pump and dump? Putting $1 million into CIM seems to indicate we have sufficient money...again, not a typical indicator of a scam.

This is ALL predicated on there being a large naked short position. As far as I'm concerned, I haven't seen any proof of this during my DD. I hope it is the case.

All in my opinion after much thought - I do own shares and am holding.

Discover What Traders Are Watching

Explore small cap ideas before they hit the headlines.

Join Today