CMKM Diamonds Inc. (fka CMKX)

[jon_e_og]

PLEASE READ AND COMMENT ON: this is quite long but I think it's well worth the read...


MY JEFF/Urban/Naked Short theory:

First, we need to go back about a year:

1) Jul/03 - CMKM files "Certification and Notice of Termination of Registration" Form 15-12G with SEC. CMKM becomes a non-reporting company.

- What does this mean? Well, for one it could have been a ploy by Urban to cover up heavy dilution, and insider option/warrant grants and thus make this one of the largest pump & dumps in pink sheet history. Personally, I don’t believe that Urban could perpetrate such a scheme and have the bravado to have personal meetings with shareholders, advertise the company through a racing team, and get one of the top Securities firms on board. IMO, it was for another purpose…to disguise his actions from the MMs or hedge funds he believed were naked shorting this and in doing so brought it down to the .0001 x .0002

2) Aug/03 - CMKM announces share dividend payout for CMI.
Aug/03 - CMKM announces 2 for 1 foward stock split.

Urban’s first attempts at reconciling the Naked Short position…either there was none at the time or they completed disregarded the CMI dividend and their obligation to either obtain CMI shares or cover CMKM shares.
This is where the trading begins to get interesting, especially the volume…looking at a 2 year chart we see that beginning the end of August/Early September 2003 trading volume picks up immensely and not just because of the 2 for 1 split. It goes from 100’s of millions to billions of shares traded every day.

3)
Sept/03 - CMKM announces six billion shares are being retired back to treasury.
Nov/03 - CMKM announces over twenty billion shares have been retired back to treasury to date.
Dec/03 - CMKM announces 16.5 billion shares officially retired to treasury.

September is exactly the time that the volume picks up…probably because of all these shares being returned to the treasury. Now if the volume suddenly surged from millions to billions and its all buy volume (the company buying back its stock) then how come the price of the stock went down to NO BID x .0001 ?

Urban thinks to himself - what the hell is going on here? I’m buying tons and tons of this stock and the price is going down?

Now Urban being experienced in the market, and probably having friends who deal in securities starts to realize what’s going on…His stock is being cellar boxed by offshore hedge funds naked shorting it like crazy(thinking it will go bankrupt, underestimating the company and the FALC region).

http://www.investorshub.com/boards/read_msg.asp?message_id=2543926

It is around this time that Urban starts to concoct a plan…start buying the naked shorts, pull certs, and return them to the treasury(thus the buy backs in November/Deceember). He probably uses a MM to do this…And that MM was most likely JEFF. People who have been in this stock for a while remember JEFF being a large net buyer over the last year at the basement level(.0001)

The dilution issue: If you believe that Urban used this time to dilute than he was doing it while he was retiring shares…a little counter intuitive and if proven is grounds for showing that he in fact manipulated this stock by releasing info about a buyback while diluted this stock into oblivion. Thus, if this was proven I’d call this a scam and Urban a scam artist. BUT, I do not believe this happened because 1) I think Urban is a fairly respectable person(from what others have said) and 2) he could make a lot more money from concocting a plan to elicit one of the largest short squeezes in history.

Now, some will argue that he has been Using JEFF recently to dilute. But this as well doesn’t make sense since JEFF has kept a strong lid on the pps…if he were diluting or dumping his own shares he would allow the pps to run up over .001(we’ve certainly had the demand to do that) and raise twice as much capital, or make twice as much money.

Now, JEFF starts buying up the basement @ .0001 or maybe even less and starts accumulating 100’s of billions of naked short shares

Just look at the volume for the last 9 months or so…it has to be a couple trillion…not saying there are that many shares out, just that a massive amount have been traded…and being that dilution doesn’t seem the likely cause, than process of elimination leaves us with the short issue.

Now Urban has bought back a decent chunk of the O/S as well as a good piece of the Naked Short shares. Remember this thing was in the cellar for almost a year and there were billions of shares being traded every day – those shares were coming from somewhere; either 1) they were coming from the treasury i.e dilution 2) they are naked short shares. It can only be one or the other; either Urban diluted this into the ground or offshore hedge-funds working together with corrupt broker/dealers have shorted this into the basement trying to bankrupt it. I geuss it’s all a matter of personal opinion. If you honestly believe Urban is a dishonest person and a scam artist and had the nerve to Issue some 450 billion shares to the general public after publicly stating he was in the process of retiring shares than this whole theory is bogus. But if you don’t believe that than the only possible alternative is a large naked short position

4) June/04 - CMKM Diamonds, Inc. Announces It Has Retained D. Roger Glenn, Partner at Edwards & Angell, LLP as Securities Counsel
June/04 - CMKM Diamonds Inc. Announces It is Retaining a Large New York Law Firm to Represent Its Interests.
June/04 - CMKM Diamonds, Inc. Announces Edwards & Angell, LLP. and CMKM Diamonds Inc. Begin Work


This is the strongest evidence to support our theory of a naked short position. CMKX is a small pink sheet company that was rumored to be a scam. It blows my mind that one of the leading securities firm, and a partner of that firm, with profound experience in securities law & corporate governance would take on a client like this. Glenn’s law firm would never allow CMKX as a client unless they had ‘something’. Something that was going to overweigh the risk of taking on a pink sheet, something that would put Angell & Edwards, as well as Roger Glenn, at the forefront of the securities world.

I believe, that Urban bought back and returned to the treasury a good deal of the O/S through JEFF and then proceeded to buy a ton of the naked short shares. Urban knows the O/S and he knows the number of naked short shares through the transfer agent who is responsible for keeping track of the company’s stock, whether in be in cert form or in a brokerage account. Now if you were planning the largest short squeeze in history, would you want to release the O/S and the NS position to the entities you will be squeezing? Of course not, that’s your ammunition, you have one up because you know both what is real and what is fake(if any)

Now, after Urban was satisfied with what he had accumulated he then went to Roger with the certs returned to the treasury, the actual O/S(from the treasury register), and the TA’s report of the number of shares held aggregate in brokerage accounts…

The T/A was reported as saying 400 billion O/S. This is probably true but may be the OUTSTANDING and not the ISSUED. If indeed there are naked shorts than the outstanding will not be the same as the issued. Because what is aggregate in our brokerage accounts is the outstanding, but it’s not necessary what the company has issued.

Once Roger looked over the evidence he realized what he had here…a chance to make history, for himself and for his firm.

5) With Glenn at his side and probably after a lot of work hunting down the MMs and broker/dealers responsible for assigning valid cusips to bogus shares, Urban in short(excuse the pun) tells them they are royally screwed.
The MMs and broker/dealers realize the situation they are in and report back to their hedge-fund clients what’s about to happen. The hedge-funds either say ‘F you’ to the MMs and broker/dealers, saying it was their responsibility to make the affirmative determinations as to the availability of the security being sold short, or they said - please help us out here.

In any event I believe there were numerous meetings with Roger, Urban and the culpable short sellers who threatened to not cover their shorts and tie the matter up in costly litigation that could easily swing the MMs way if they were to use just a smidgen of the money created from the naked short selling to hire one of the best securities team in the legal world. Urban and Glenn did not want that, it would leave the issue in limbo giving the hedge-funds the ability to cover cheaply or continue manipulating the price.

So they come to an agreement for something of a partial covering situation by the MMs at a low price, of less than .001
They would allow them to buy back say 250 billion(random geuss) shares through the market maker JEFF at a price that would suppress demand for the stock and keep the price low giving them a chance to cover and buy a good deal of retail shares as well at these low prices.

Why would Urban let them get off so easy? 1) The MMs and guilty broker/dealers most likely threatened to tie this up in court 2) He wants to raise capital for the company: .0005 - .0001 = .0004(profit) * …billion = a lot of money for expenses, explorations, buy outs, legal fees etc. 3) He needs the market makers to be on his side in the future 4) We would still have a massive short squeeze because of the drastic decrease in supply as JEFF’s shares are being bought to cover and immediately destroyed.

5) July/20 - CMKM Diamonds, Inc., to invest in Casavant International Mining, Inc. Declares Dividend For Shareholders
July/18 - CMKM Diamonds Inc. Announces Dividend to Shareholders of Record Date and Option Agreement

Now, here it is - the deadline… either the MMs weren’t covering or Urban felt they have had enough time already so he forces them to cover by August 20th.

He allows JEFF to keep selling and keep the price down so as to allow as many new investors to buy in and old longs to add to their position. Anyone buying before August 20th is going to receive a huge dividend, a dividend that sets a value to the company, forces short positions to be covered, and gives a definite timetable to what is going on.

In conclusion; this is all merely speculation and just my opinion. I was looking back on what went on and what is going on now and it just seemed to make sense…All I know is naked short selling is a problem, and has destroyed thousands of companies. All the evidence hitherto shows a large number of shares in the publics hands… a number of shares that seems so large there are only 2 possibilities

1) Urban has issued over 400 billion shares since his last filing of doing just the opposite, making this one of the largest scams/pump & dumps/corporate printing presses in the market’s history. This in turn would create a myriad of legal action against Urban, his coconspirators, and one of largest and most prominent securities law firms in the country. I feel that if the O/S of this company is anywhere near 500 Billion this is indeed one of the largest security scams in American history, and Urban is not only a scammer but a conmen among conmen. IF he has the audacity to print up over 400 billion shares after saying just the opposite, and doing it in such secrecy he is not only a conmen of Enron-like proportions, he will be one of the most hated men in America. He has met with hundreds of shareholders face to face and put his credibility on the line numerous times; if he is in fact lying to us all I surely feel bad for him, his family, and his friends, for as it stands thousands of investors have put their trust and money in his hands and if he blatantly spits in their face there will certainty be hell to pay

2) There is in fact a large naked short position that Urban, Glenn, and JEFF have been dealing with for the last year. If this is the case this stock will make history for 2 reasons 1) it will be the largest short squeeze in history, consequently creating vast amounts of wealth for CMKX investors 2) it will mark the beginning of the end of naked short selling and offshore manipulation of American companies.

Again, this is all speculation but seems to make sense to me…If in fact what I say is only partially true then we are in for one hell of a ride and all I can say is – prepare to be astonished.