CMKM Diamonds Inc. (fka CMKX)

[gody123]

*O/S and Float (Adjusted, Again)*

(This post wouldn't post properly so its a little messy)
I received an e-mail from somebody who is attempting to get into Sterling's Classroom. He pointed out an error in this post. The numbers for "Insider Restricted Shares who guarantee Urban 51% control" now reads "58,350,888,742" and the new O/S reads "232,060,566,161 Outstanding Shares". I believe his screen name is warkoa, and I send my thanks for pointing this out.

Assumptions:

(1) The dividend ratio for UCAD shares is .0000155
(2) CMKX 8% dividend applies
(3) Just the float receives the dividend
(4) The CIM dividends are exempt from the 8% Rule

Basis for Assumptions:

(1) OTC-BB

http://otcbb.com/asp/dividend.asp?sym_id=CMKX&dDate=08/20/2004&sDateType=record_date\

(2) 8% dividend policy

http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_Jan_7/ai_96198036

(3) Urban stating dividends were for the float

(4) CIM is spinning off and isn't a cross-dividend
_____________________________________________________

UCAD shares held by CMKX: 7,500,000
8% of these UCAD shares : 600,000
Dividend Ratio of UCAD : .0000155

CMKX Float = 8% of UCAD shares / dividend ratio
= 600,000 / .0000155
= 38,709,677,419


CIM Dividend Shares = 40,000,000,000

40,000,000,000 CIM dividend shares
- 38,709,677,419 CMKX Float
___________________________________________
1,290,322,581 Extra CIM dividend shares

For the old shareholders who received CMI dividends in 2003, this extra 1,290,322,581 shares of CIM will be exchanged for those old CMI shares...

To throw out a slightly educated guess for the O/S once again...

38,709,677,419 Float
+ 75,000,000,000 Nevada Minerals Restricted Shares
+ 60,000,000,000 Urban's shares (after giving up
40,000,000,000 to Nevada Minerals)
+ 58,350,888,742 Insider Restricted Shares who guarantee Urban 51% control
___________________________________________________________
232,060,566,161 Outstanding Shares

Here is a wild, far out guess of the Float including NSS:

CMKX: Current float (IMO)

(1) Shareholders (Low) : 7,000
(2) Shareholders (High): 8,000

(3) Average Shares Per Shareholder (Low) : 10,000,000
(4) Average Shares Per Shareholder (High): 20,000,000

(5) Float (Low) : (1) * (3) = 7,000 * 10,000,000
= 70,000,000,000

(6) Float (High): (2) * (4) = 8,000 * 20,000,000
= 160,000,000,000

Float Range (5) and (6): 70,000,000,000 and 160,000,000,000


If someone such as Urban holds a huge sum of naked shorted shares then that would greatly distort these numbers. Consider the fact that there are a huge number of naked shorted shares out there. Remember...

Float = Real Shares + Naked Shorted Shares
Float - Naked Shorted Shares = Real Shares

So, the new formula would look something like this...

Float (Low) : 70,000,000,000 - NSS = New Float (Low)
Float (High): 160,000,000,000 - NSS = New Float (High)

If you fill in the NSS with any random number, you will realize that just about anything is still possible with regard to the float (IMO)

Assumptions:

Shareholder Base: 8,000
Average Shares Per Shareholder: 20,000,000

Float = Shareholder Base x Average Shares/Shareholder
Float = 8,000 x 20,000,000
Float = 160,000,000,000

Keep in mind this is similar to using ...

Shareholder Base: 16,000
Average Shares Per Shareholder: 10,000,000

So, now to break down the float...

Float = Real Shares + Naked Shorted Shares

Guessing a public float of 160,000,000,000 including NSS (from above):

Float - Real Shares = Naked Shorted Shares
160,000,000,000 - 38,709,677,419 = 121,290,322,581

So, the wild guess is that there are 121,290,322,581 NSS in the float...

But, if we take the 160,000,000,000 from above and assume an average daily volume of 4,000,000,000 then the average volume per day would be...

Daily Volume as a % of Float = Average Daily Volume / Float
= 4,000,000,000 /160,000,000,000
= .025
= 2.5%

A stock that trades 2.5% of the float each day is high, but I believe the MMs are creating artificial volume each day. If I were to believe anything in this whole post it would be what I just stated: MMs are creating artificial volume. By the way, keep in mind from above that the real float would be 38,709,677,419 and the float including NSS would be 160,000,000,000. For your information this post grows more speculative as it approaches the end, so be aware of that. These aren't necessarily my opinions, but make partial sense when considering certain assumptions...