The Day Shorters Room

[Warhorse]

I demand to know what farkin drugs this guy is on. I want some. WOWWEEEE! This boy is seriously tripiin.

By: WillyWizardClub
25 Aug 2004, 06:01 AM EDT
Msg. 502118 of 502322
Jump to msg. #
MUST READ!!! "The Willy Maneuver"

The Willy Maneuver!!!!

My opinion on CMKX AS raised to 800 billion

Yesterday, I wrote about the newly raised Authorized Shares looking at three scenarios. The three scenarios I wrote are, a forward split but I have ruled that out, a merger or acquisition, could happen, large investor like London Investment Company buying a big block of stock in some type of deal like UCAD did last week, this is my choice.

(THE LONDON INVESTMENT COMPANY
AKA (LANGLEY INVESTMENT TRUST) (LANGLEY PARK INVESTMENTS PIC.)(LIT)Reference source at bottom)

Today, I am going to focus on one scenario that makes sense to me, the London Group(LIT) who recently did financing for UCAD. It is obvious CMKX needs funding to take the next big step to purchase more drilling rigs. Also when CMKX identifies diamonds in the current Kimberlite drilling project they could start some type of mining operation, hopefully “open pit mining’.

UCAD and CMKX are so interweaved owning parts of each other’s holdings I can’t see CMKX using anyone other then London Investment Company for ongoing financial needs. The Flow Chart made by PastorPaulBaily from PalTalk shows us the interweaving of CMKX and UCAD:

http://willywizard.com/Profile-CMKX.htm

I am going to work out some figures showing what IMO we could see take place. I am using the UCAD Press Release dated Thursday August 19, 4:56 pm ET where UCAD announced the “London Investment Company PURCHASED $9,005,355 of UCAD’s shares”, slightly discounted UCAD shares would be valued at apx. $1.78 per share ($1.78 divided into $9,005,355 equals apx. 5,000,000 UCAD Shares) and in exchange for shares of the investment company will issue to U.S. Canadian Minerals Inc. $9,005,355 USD equivalent of its shares “at a price per share valued at one pound sterling”, one pound sterling equals apx. $1.78, therefore $9,005,355 equals approximately 5,000,000 London Investment Company’s (LIT) shares to be traded on the London Stock Exchange.

$9,000,000 = 5,000,000 UCAD Shares to London Investment Group
$9,000,000 = 5,000,000 Langley (LIT) shares to UCAD

$18,000,000 = Total cash value Langley (LIT) Invested in UCAD

This is a win win for both company’s cash equity position
I am going to attempt a comparison valuation if CMKX were to allow the London Investment Company (LIT) to invest equivalent to the UCAD investment. I need to establish and real value for CMKX so for this I am going to use two recent UCAD Press Release where UCAD is purchasing a total of 15% of CMKX.

After a recent meeting in Las Vegas July 16th, “U.S. Canadian Minerals Sets Meeting with Other Saskatchewan Mining Claim Owners in Nevada”, we started to see real valuation of the claims owned by CMKX. In UCAD’s form 8-K July 21st, UCAD placed a “Change in Assets” entitled “ACQUISTION OR DISPOSITION OF ASSETS” where The Company purchased 5% of all current and future claim holdings and mineral interests of CMKM Diamonds in exchange for 7.5 million shares of common stock of U. S. Canadian. In addition, the Company acquired an option to purchase an additional10% of such interests for $15,000,000. We see UCAD has already made one payment, July 28th, toward the additional 10% they are entitled to receive under the agreement, “The option, agreed to last week between the two parties, has been exercised for an additional 2% interest in all of CMKX's mineral claims for $3,000,000 USD. Under the agreement reached last week, UCAD has a one-year option agreement to purchase an additional 10% interest in all of the mineral claims held by CMKX for an aggregate total of $15 million USD payable to CMKM Diamonds Inc.”

The establish value for 15% of CMKX’s claims now has hard cash value:

7,500,000 shares of UCAD have recently traded as high as $6.50 since the acquisition was announced. Currently UCAD shares are quoted bid $5.00. The approximate trading price at filing was $2 dollars.

7,500,00 shares time $2 equals
$15,000,000 for 5%
$15,000,000 for additional 10%

This $30,000,000 (stock and cash) established a hard cash value per 15% of CMKX’s claims. At 100% value using the $30,000,000 CMKX claims should be valued at apx. $200,000,000 million dollars. This isn’t bad for a company that holds claims with no proven diamonds.

Now that I have established $200,000,000 million dollars as a value to CMKX claims what portion would they sell to London Investment Company and for what dollar/stock swap total? This is where the newly registered 300 billion authorized shares come into play.

I would think the deal London Investment Group made with UCAD could be a blue print for a deal with CMKX. I would also like to think the deal UCAD made with CMKX would be a blue print to establish value to the London Investment Company.

This is where I interweave the two transactions to attempt to establish why CMKX just raised their authorized shares to 800 billion, 300 billion above the previous 500 billion authorized.

Up to this point I have (attempted) established CMKX claims via UCAD transaction at $200,000,000 million. The London Investment Company also has established what equivalent they are looking for in a money/stock swap in the UCAD deal. I will use the 15% rule that the UCAD/CMKX used as a rule for the speculative CMKX/LIT transaction. This gives LIT’s expected investment in CMKX at $30,000,000 US dollars. Normally such a purchase is discounted to the current trading average, possible .0001 times $30,000,000 equals 300 billion. This adds up to the newly increases authorization from 500 billion to 800 billion. Also to match the UCAD transaction the London Investment Group should match $30,000,000 equivalent of its shares “at a price per share valued at one pound sterling”, one pound sterling equals apx. $1.78 therefore $30,000,000 equals approximately 17,000,000 London Investment Company’s shares to be traded on the London Stock Exchange. This gives credit to the entire LIT investment at much more then a mere .0001 CMKX per share value.

Could look like this:

$30,000,000 divided by .0001 equals 300,000,000 billion CMKX shares
$30,000,000 = 17,000,000 LIT Shares London Exchange shares to CMKX

$60,000,000 = Total cash value Langley Invested in CMKX

If the above scenario is correct this would double the 100% valuation of CMKX to $400,000,000 million dollars.
$400,000,000 100% Total Claims Value After LIT Investment
In addition CMKX receives ½ the 17,000,000 LIT shares up front so this is another possible stock dividend for shareholders. LOL can you imagine the Market Makers trying to buy LIT stock on the London Stock Exchange to cover…:).

I think the above could be a possibility but actual numbers will change. This is total speculation on my part.

If the above took place this would create a instant cash valuation for CMKX, instantly giving CMKX credibility. This would show the Market Makers CMKX is not going out of business. CMKX is here to stay is the word CMKX wants to express to the MMs, DTC and all shareholders.

Also keep in mind the above equals 30% of the Authorized credited to financial Investment and 70% remains for other. This does leave room if the company chooses to bring in another investment such as a company to actually participate in the mining operations, such as Shore Gold. Shore Gold was just used as an example, not putting to much into this but you never know what might happen.

Short Position

Yes I still believe CMKX has a short position against it. Recently CMKX announced a stock dividend for shareholders of the 7.5 million UCAD shares. This UCAD dividend has a factor .0000155. When Pink Sheets.com was contacted they said the factor was given out by the company. This factor gives CMKX almost 484,000,000,000 billion shares issued. This matches what the T/A reported about a month ago accidentally to a caller.

Now lets take a look at the CIM dividend of 40,000,000,000 billion shares. It has been reported the factor is .028 reported by the DTC not the company. This was given to me by a very reliable source that called DTC. This is the DTC reporting according to stock they have on record sold by the Market Makers. 40,000,000,000 billion shares divided by .028 equals apx. 1.4 trillion shares. How can the DTC report such an inflated number if the company only reported 483,000,000,000 billion shares on the UCAD dividend. We can only come to one conclusion that the Market Makers have sold more shares to the public then available. Also DTC plays a roll in this problem by issuing cusip numbers to the phantom shares as they are settled. The settlement is with the brokerage house the public used to buy shares.

1,400,000,000,000 (.028 divided into 40billion CIM dividend)
484,000,000,000 (.0000155 divided into 7.5 million UCAD)
916,000,000,000 billion extra shares the company does not account for. I see no other way to look at these shares but to say they are shorted shares, naked short shares of phantom shares. We can call them what ever we want but bottom line is the company doesn’t acknowledge these extra shares in their UCAD dividend ratio.

At this point I am going to stay with my theory that a cash dividend is needed to force the Market Makers to cover. It would not take a huge cash dividend. The best way to work this would to take some of the $42,000,000 (includes 12 mil left UCAD balance and estimated $30,000,000 LIT) money to do three or four cash dividends over a 9 week time frame. These dividends don’t need to be large, $2,500,000 million times 4 would be sufficient.

Understand if CMKX were to pay $2,500,000 on the day of this announcement automatically the Market Makers would have a big problem because they are caught short close to apx. two times the actual company issued shares. This would create a payable short for the Market Makers approximately $5,000,000 million. If this was done four times over a 9 week time frame it would keep the Market Makers scrambling to cover.

I understand $5,000,000 million doesn’t sound like a lot of money for the wealthy Market Maker but four $5,000,000 million dollar hits over a 9 week time frame is a fairly large sum of money. Along with the money the Market Makers would be forced to come up with these 4 dividends would create a short cover which would increase the CMKX share value. Yes the dividends are small to the shareholder but add an increase in share price this is a double bonus.

How long would it take the Markets Makers to cover 1.3 trillion shares with average volume at 7,500,000,000 billion shares trading per day. If the Market Makers were buying 7.5 billion shares per day to cover take in to consideration at least 2.5 billion addition shares of buying should come from the retail buyers equally 10 billion volume per day. Just the Market Makers alone attempting to cover it would take them 122 days divided by 5 trading days per week it would take the Market Makers 24 weeks to cover. I can honestly say in my opinion the Market Makers would step up covering and CMKX could trade 20 to 30 billion shares per day, including retail buying.
No matter how we look at a short covering the Market Makers will have a definite problem paying these small cash dividends. If they are hit in repetition four times in a row, a few weeks apart and they were also forced to buy shares out of the market to cover this would hurt the Market Maker.

Also we can forget the current stock dividends, UCAD, CIM and GEMM. If CMKX did the above LIT transaction LIT could also be a stock dividend. LOL Let the Market Makers go to the London Stock Exchange to cover that dividend. LOL

I have written about this naked short many times. This the first time I was able to find figures/factors that actually show my theory is a good possibility. No I don’t have absolute proof but I feel what I just wrote was justified. Yes it’s 100% speculation but I did try to show where all my speculation originated.

READ ALL THE WAY TO THE END!!!!
___________________________________________________________ Notes:
TO VERIFY THE INFO BELOW, GO TO THE GOOGLE SEARCH ENGINE.
1. CLICK ON THE “NEWS” ABOVE THE WINDOW.
2. CLICK ON ADVANCED SEARCH (TOP RIGHT OF SCREEN).
3. TYPE: LONDON INVESTMENT COMPANY (IN THE “WITH THE EXACT PHRASE WINDOW”
4. VERIFY DATE AT BOTTOM OF SCREEN (I USUALLY GIVE ABOUT A MONTH 7/01/04 THRU 08/20/04)
5. THIS WILL GIVE YOU THE 1ST 6 COMPANIES COMPANY 7 WAS UNDER LONDON BASED INVESTMENT

THIS WILL BRING UP THE NEWS RELEASES THAT I RETRIEVED THIS INFO FROM.

THE LONDON INVESTMENT COMPANY
AKA (LANGLEY INVESTMENT TRUST) (LANGLEY PARK INVESTMENTS PIC.)

YOU WILL FIND THE LANGLEY PARK INVESTMENT TRUST PLC ON THE GALAXY MINERALS 8K FILING. IF YOU READ THE BOTTOM OF THIS FILING ITS PRETTY MUCH HOW ALL COMPANIES WILL BE DONE.

THE INFERENCE OF THE 23 COMPANIES AND $139 MILLION IS ON THE OMNI MEDICAL NEWS RELEASE.

23 MICROCAP COMPANIES SELECTED FOR INCLUSION IN A $139 MILL TRUST

PR DATE COMPANY NAME

1. 7/28/04 GALAXY MINERALS -GAXY $12,000,000
2. 8/05/04 NEWPORT INTL GRP -NWPO $11,600,000
3. 8/09/04 DIRECTVIEW INC. –DRVW $ 2,360,000
4. 8/10/04 OMNI MEDICAL -ONMH $ 1,645,000
5. 8/17/04 AVENUE GROUP -AVNU $11,000,000
6. 8/19/04 CANADIAN MIN. INC-UCAD $ 9,005,355
7. 8/23/04 FORUM ENERGY -FRUEF $ 5,481,000


SUB TOTAL $53,091,355

Source: Robin From PalTalk, Thank you for contributing
____________________________________________________________
Below is what a CMKX Press Release could look like:

London Investment Company Enters Into Agreement With (Casavant Mining) U.S. Canadian Minerals Inc. for the Purchase of ($30,000,000 USD of Casavant Mining)
Thursday August 19, 4:56 pm ET

LAS VEGAS--(BUSINESS WIRE)--Aug. 19, 2004--U.S. Canadian(Casavant Mining Pink Sheet CMKX) Minerals Inc. (OTCBB: UCAD - News) announced today that it has signed an agreement with a private investment company for the purchase by the investment company of ($30,000,000 of CMKX common shares in exchange for…shares…) $9,005,355 USD of U.S. Canadian Minerals Inc. common shares in exchange for shares of the investment company.

The investment company is a newly formed London-based entity that will apply for its shares to be admitted to trading on the London Stock Exchange as an investment trust. The investment company has been established specifically to invest in U.S. micro cap companies with long-term growth potential. The investment company expects its shares to be trading on the London Stock Exchange by Sept. 30, 2004.

"This investment will enable (CMKX) UCAD to continue its rapid growth and expand its worldwide operations," said Rendal Williams, CEO of U.S. Canadian Minerals Inc (Urban Casavant…).

The investment company has entered into a "lock-up" agreement with (CMKX) U.S. Canadian Minerals Inc. pursuant to which it has agreed not to trade (CMKX) U.S. Canadian Minerals Inc. shares it will receive as a result of this transaction for a period of two years from the closing date. In full payment for the shares of (CMKX) U.S. Canadian Minerals Inc., the investment company will issue to (CMKX $30,000,000 equivalent of its shares at a price per share valued at one pound sterling.) U.S. Canadian Minerals Inc. $9,005,355 USD equivalent of its shares at a price per share valued at one pound sterling.

Fifty percent of the investment company's shares issued to (CMKX) U.S. Canadian Minerals Inc. will be held in escrow for two years following their issuance and in the event the per share market price of (CMKX) U.S. Canadian Minerals Inc. common stock at such time is less than the per-share value of (CMKX) U.S. Canadian Minerals Inc. stock at the time of the closing, the investment company shall be entitled to the return out of escrow a percentage of the investment company's shares equal to the market value of such decline. The remaining shares held in escrow shall be released to (CMKX) U.S. Canadian Minerals Inc. at such time. The closing of this transaction is subject to certain contingencies, including the listing of the investment company shares on the London Stock Exchange on or before Sept. 30, 2004
____________________________________________________________
You can see the similarities of CMKX and UCAD might have in regards to a capital investment by The London Group, LANGLEY INVESTMENT TRUST.

I tried to show company cash valuation in growth from the UCAD investment transaction of $30,000,000 equaling $200,000,000 million at 100% of the whole company. I also attempted to show the next step in valuation from LIT of $60,000,000 which doubled the 100% of the whole company valuation to $400,000,000 million dollars.

Also I tried to show the significance of a cash dividend (4 cash dividends over 9 weeks) to force the Market Makers to start covering. To me this an absolute must and the only way to catch someone’s attention is hit their bank account. Again these dividends can be small but hit four times in 9 weeks in addition to stock dividends would surely catch their attention.

I hope you enjoyed this newsletter. Remember this is total speculation on my part but this is the only scenario that makes sense to me out of the three I mentioned in yesterday’s newsletter and in the beginning of this newsletter.

No I have not sold a single share. Only panic sellers and short term minded individuals allowed the increased Authorized Shares to scare them into selling.

Thank you,

Hal Engel aka WillyWizard
http://willywizard.com
Disclaimer: Not Paid http://willywizard.com/Profile-CMKX.htm




(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)

- - - - -