One Step Ahead

[Bo14172]

CMKX: Short Selling Discussion.

If we all were given a nickel for everytime the words "naked shorting" have been used, we'd be wealthy on that premise alone. :)

Of course it's a concern and I like many am very interested in the audit and Attorney Glenn's opinion on the naked shorting issue, (nickel for all) if it does indeed exist.

The only reason I believe more than prior days that it does exist, are the comments made by Urban to Mach and some others at this week's race. It was clear to me from the Jan 03 pr, that naked shorting (nickel) was a possibility. We use the term loosely, but this is a very serious crime. It's very nature is a prima facia case for criminal intent and federal securities charges. I've said before, such revelation by CMKX in the near future, with the comments and representation of an attorney with the stature of Atty Glenn, will shake a very large and deeply rooted tree. IF such practices existed, those MM's and whoever else is involved, will be exposed to criminal and civil litigation. At that time it would be the decision whether to proceed with such litigation, or force and plea and settlement agreement with the guilty parties.

For Urban to state such at the races this weekend, and again verbally suggest for shareholders to request certificates to help the naked shorting issue (nickel), tells me that Atty Glenn approved of Urban's comments and advice to us. As we have seen, after Atty Glenn was signed on, comments were MUCH fewer and even now, "no comment" is the answer to certain questions.
In sum, there is now to me more evidence that such illegal trading practices exist.

However........
The talk of naked shorting (nickel), although very important and valid, talks of half the picture. I know what I'm about to say seems fundemental, but I just think it needs to be thrown into the mix in this discussion.
I'm not a fan of short selling. I know why it exists and am aware of the historical time period it was put into place, but it still doesn't make me a fan of it in today's 2004 market.
If there is a LARGE block or blocks being LEGALLY shorted over periods of time by MM's, forcing the price down, this is another compelling reason to request your certs. I mentioned in my lsat post as the double squeeze that would result with more and more certificates being requested by "team CMKX" (naked shorting & legal shorting). Let's assume the most conservative and bottom line approach for this discussion: - As investor's and believers in CMKX, we don't care if it is being legally shorted to death, or naked shorted (nickel) on top of that, all we know is the price hasn't moved despite a daily diet of BUYS - Let's assume further that it is found that naked shorting doesn't exist, but through MM's strong armed trading practices (freezing and slow walkdowns done through LEGAL shorting), this is the reason the price stays flat despite the news on anomalies, dividends, etc.
Thus, requesting certs would have the exact same squeeze result, resulting in less shares for them to borrow, and an even smaller pot to buy them back to cover.

What follows is an excerpt from a page fully explaining the transaction. I'll provide the link and what follows is an excerpt from the discussion. Here is the link: http://www.investopedia.com/university/shortselling/shortselling1.asp

Here is the excerpt:

" Still with us? Here's the skinny: when you short sell a stock, your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another brokerage firm. The shares are sold and the proceeds are credited to your account. Sooner or later you must "close" the short by buying back the same number of shares (called "covering") and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money. "

At least for me, in the case of CMKX, having the cert in my hand ENSURES my shares will not be part of ANY short sellers position.

There's more I'll add to this discussion later today or tomorrow, but whether it be naked shorted to death (nickel), or manipulated in a strong armed manner through collusion and legal naked shorting matters not in the end to me. Securing the Certs is the one way shareholders can AID to the effort of CMKX, Urban and Atty Glenn. Remember, Urban wouldn't state it now if Atty Glenn didn't feel it was wise to do so.

Be well, Bo