One Step Ahead

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On RB: CMKX Bashing?
By: bobo_rev.1
06 Aug 2004, 08:54 AM EDT
Msg. 450546 of 450763
(This msg. is a reply to 450537 by thewalldoctor.)
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walldoc - sheesh!, so it's DD you want, should of just asked!

CEO: Urban Casavant
* Increased Authorized and Diluted Billions of shares with PetroPlus
* Casavant Golf Is In Default in Nevada
* Casavant International Mining Is In Default in Nevada
--> Because of this, the CIM divies supposedly issued in 2003 never came to fruition
* Casavant Does Not Disclose:
--> Outstanding Share Count
--> Authorized Share Count
--> Corporate Phone Number
--> Corporate Fax Number
--> Corporate Email Address

About The Company's Law Firm, Edwards & Angell (Roger Glenn, Partner)
In the matter of a couple of a weeks, Roger Glenn on behalf of his client Urban Casavant, executed 4 separate assignments of CMKX Transfer Agent duties. Specifically:
* Global was released as the current TA
* Pacific was hired to assume TA responsibility
* Pacific was released from TA responsibility
* Urban Casavant was appointed the Company TA
* Urban Casavant was removed as the Company TA
* Global was reinstated, and is the current TA

It appears that neither Roger Glenn or Urban Casavant have a clue on how to tackle the share structure problem. Global remains gagged now, as before, from releasing any share structure information even though all audits have been completed. Pacific did give out an OS figure of 400 billion* at the end of June to those who called, shortly before being terminated. The reason given for their release, the Company says, 'Pacific could not handle the phone calls'. This comment is obviously inconsistent with Mr. Glenn's earlier quote about Pacific, "The Company is proud to announce this relationship with Pacific Stock Transfer. It has a fine reputation as a transfer agent, and the Company is looking forward to working with it in the future. The Company is confident that Pacific Stock Transfer will process transactions in the Company's stock accurately and quickly." From where this writer sits, Roger Glenn was right - Pacific did process transactions in the Company's stock accurately and quickly as well as handle the phone calls. What Pacific did not do was follow Casavant's long standing gag order, it's unfortunate that Roger Glenn apparently also feels company disclosure of the sharestructure is not any of the investor's business. *The Pacific OS figure of 400 billion was reported by Pacific as 'the Global TA number', so Pacific's audit of Global did not find any inconsistencies.

Dividends, Dividends, Dividends!
We now have two PRs detailing a dividend plan for 'Shareholders of Record' at the end of August '04. Will these turn out to be like the CIM dividend of '03 which never made it to market? Who knows, a long's hope springs eternal on that question, but do they really have any other choice?. What makes this dividend offering even more peculiar is that they have been structured as follows:

* The shares will not be registered
* They will be newly issued & restricted, holding period of at least one year
* There are provisions for the shares to be canceled & voided

The last clause above is alarming to say the least, it provides for the complete bailout in making good on the dividend offer, why does Urban Casavant feel he needs to have that option available to him? Historically, dividends are issued as an incentive for new shareholders to buy the company stock, and existing shareholders to hold or add to their positions. If the company is selling shares into the market (i.e. liquidating Authorized Shares into the float), this provides for a revenue stream to the company, this particular action is called 'company dilution', and is detrimental to the share value as well as shareholder.

What Is Known About CMKX
* The OS is 400 billion or greater, up 300 billion from January
* Casavant does not have the operating capital to sustain any real drilling operations
* The only revenue stream Casavant has is appears to be share dilution
* Casavant has major overhead with his funny car NHRA entry
* Recent Casavant expenditures show the purchase of a 2nd 'hot rod' truck, drag bike and motocross bike
* Casavant has mineral rights to 1.4 million acres in Canada
--> With the inception of Petro Plus (early 1990's), Casavant has been taking core samples on some of that same property in search of marketable minerals & deposits, to date Casavant has yet to find anything in sufficient quantity to warrant mining to bring those products to market.
* CMKX Is Not Tradable In Canada (not listed on any Canadian exchange)
* The Authorized Share cap is set at 500 billion (the Nevada limit for incorporating in that state)
--> Nevada Is The Most Unregulated State In The U.S. For Securities
--> Casavant's 'Revenue Stream' from share dilution is in U.S. Dollars, not Canadian Dollars

What The Future Holds IF The Past Is Any Indication
Casavant’s revenue stream will end once the OS=AS. Furthermore, it can be shown from the January to June Authorized increases, that Casavant’s burn rate is 50 billion shares per month, or 2 billion shares per day. The daily time & sales logs also confirm this to be happening. Because of this rate of dilution, Casavant is on track for a revenue flame-out in September when he completes 100% dilution of the AS. What will Casavant do when September arrives, he has several options:

1. Just increase the Authorized and continue to dilute into the float. This is not possible legally, he is already at the 500 Billion share maximum allowed by the state of Nevada for incorporating in that state.

2. Change the Company name to something else in concert with a Reverse Split and new Authorized Share cap above the post-split OS number. This is most likely to occur as it affords Casavant the luxury of continued diluting into the float under a new company name and ticker. Because we know from Casavant’s current burn rate (50 billion/month x .0003 avr.= $15 million per month), he will maintain that level of dilution with the new company based on its' new share structure.

3. Go into a new line of business altogether, this is VERY unlikely. Although Casavant has a history of doing this (see previous Casavant ventures like 'Casavant Golf'), the writer believes Casavant has found his 'niche Company' with diamond mining. It captures the imagination of the “dream seekers” and allows the Company to PR progress toward reaching that “found treasure” or "mother load" without ever finding anything.

What Should A Potential Investor Do?
1st, I recommend you review this post by Janice Shell. She also has others that 'cut to the quick' with CMKX, all would be recommended reading if you have the time. If you don't know who Janice Shell is, you should probably run for the nearest exit and cut your teeth on a more conventional OTC (non-pinksheet) play, you're most likely out of your league looking at this non-reporting Canadian stock.
http://www.investorshub.com/boards/read_msg.asp?message_id=3701725
With all of the above in play, it is obvious any potential shareholder needs to exercise extreme caution here. In making a determination of CMKX viability as an investment, the writer suggests that one apply a prosecutor's scrutiny to CMKM Diamonds Inc. A good starting point would be reviewing that very "criteria" used by prosecutors toward Urban Casavant as a credible CEO you can trust.

MEANS
Noun: Means
1. How a result is obtained or an end is achieved
2. Instrumentality used to achieve an end
3. Considerable capital (wealth or income)
Comment: Selling shares on the open market in exchange for capital.
I believe Urban Casavant is doing this based on the AS increases we already know to be true.

MOTIVE
Noun: Motive
1. The psychological feature that arouses an organism to action toward a desired goal; the reason for the action; that which gives purpose and direction to behavior
Comment: We all know Urban owns a Funny Car and races it on the NHRA circuit.
I believe Urban is funding his Funny Car expenses through his selling of shares into the market, he simply doesn't have any other source of revenue.

OPPORTUNITY
Noun: Opportunity
1. A possibility due to a favorable combination of circumstances
Comment: The glamour & potential of Diamond mining (DeBeers), the ability to have 500 Billion shares in the Authorized pool, proven success with previous ventures in selling shares out to the Authorized limit in NV.
If you were Casavant, would you pass up this opportunity to pay for your 'dream come true' wish to compete on NHRA circuit?

Further information on CMKM Diamonds Inc. may be found at the following sites:
http://www.stockpatrol.com/schlock/articles/cmkm.html
http://www.stockpatrol.com/schlock/doghouse/u_cmkm.html
http://www.stockpatrol.com/schlock/doghouse/u_cmkm2.html
http://www.stockpatrol.com/schlock/doghouse/u_cmkm3.html

About The Publisher of StockPatrol.com:
Mr. Bernstein was a noted securities lawyer who represented dozens of public companies and brokerage firms. His clients included a group of brokerage firms that were involved in underwriting small, so-called emerging growth companies. To his regret, Mr. Bernstein became aware of certain aspects of his clients’ activities, and didn’t disclose those activities to securities regulators. As a result, Mr. Bernstein agreed to plead guilty to participating in a conspiracy to commit securities fraud, and was sentenced to probation.

Those same prosecutors (SEC) now value Bernstein's judgment on scams, they know he was caught in the middle between client disclosure and the law. Lawyers get away with this all the time, it appears the SEC has tougher rules regarding ethical conduct than law firms. Hartley Bernstein then went on to become the founder and publisher of StockPatrol.com. It is widely acknowledged as one of Wall Street’s leading watchdogs. Since July 1999, StockPatrol.com has provided an inside view of Wall Street, with detailed reports on public companies, brokerage firms, and regulatory developments. Its mission? To help investors navigate their way through the securities markets and the financial industry. Dozens of the companies and people that have been profiled on StockPatrol.com have subsequently been targets of regulatory proceedings, investigations and criminal prosecutions. Hartley Bernstein has been featured in The New York Times, The Wall Street Journal, Forbes, Details Magazine, Chief Security Officer Magazine, and Investment Dealers Digest, and has appeared as a guest on CNBC, CNN and Bloomberg television. He also is a contributor to a variety of magazines including BioBusiness, and Mergers & Acquisitions. Mr. Bernstein also hosts “Money Patrol” a syndicated weekly radio program broadcast across the country, and on the Internet, on the Business Talk Radio Network. Money Patrol focuses on money - how to make it, how to invest it, and, most importantly, how to protect it.

It is the opinion of this writer that Hartley Bernstein is on the side of the investor, he has no ulterior motives regarding CMKX, and is simply sticking to his charter of exposing investment scams where he sees them. The "following" he has speaks for itself, and as always, do your DD before making ANY investment decisions.

Don't Be Afraid To Call It Like You See It! - bobo_rev.1