CMKM Diamonds Inc. (fka CMKX)

[investorcg]

AL...Disagree, if they retired the shares into treasury and then reissued, its dilution.

AGAIN, HERE'S THE EXAMPLE (HYPO)

1: CMKX has issued 100 bil shares

2: Shorters sell to Urbie 50 bil shares

RESULT: CMKX has 100 bil shares O/S
SHORT position is 100 billion

3. CMKX buys back 50 billion shares, also on shorting

RESULT: CMKX has 50 bil shares O/S
SHORT POSITION IS 100 billion

4. If CMKX then resells the shares back at .0004, the 50 billion IS DILUTION. Assume sold to people NOT covering their shorts.

RESULT: CMKX back to 100 bil shares O/S
SHORT POSITION stays at 100 billion


Be careful when you analyze who is selling, CMKX v. Urban individually. THey do have major consequences.