CMKM Diamonds Inc (fka CMKX)

[jalexand42]

TSX: Vastly overvalued?

I don't know. I don't want to pump, that's not my style...but some numbers don't necessarily agree.

But: Last Friday, we closed at .0004 Ask. Assuming that value * 500 Billion shares, we had a $200 million market cap. Definitely seemed potentially high to me.

Sunday, we have a OTCBB company give us approximately $25 million in their stock for a 5% share of our claims. You could even say $40 million for 15% if you include the option.

At $25 million for 5%, that values the claims at $500 million.
At $40 million for 15%, that values the claims at $266.67 million.

The value of both companies has increased since the announcement, making the deal even look a little better on paper for CMKX's valuation.

That's all assuming the O/S is 500 billion and 1x multiplier on the claim value to determine market cap (which might be fair until we actually 'find' something - I don't know what is 'typical')

The big question there is if UCAD would do something to screw it's own investors to participate in a pump of CMKX? I don't really buy that either, I would expect the UCAD folks believe they got a fair/good deal.

Certainly another valid question is how they valued the claims.

I don't think the dividend is worthy of a run in the CMKX stock without more information, but I'm not so sure we're very overvalued.