AI
Sunday, September 12, 2004 3:08:40 PM
Posted today by Sterling. Just for your information.
By: stervc
12 Sep 2004, 09:58 AM EDT
Msg. 80274 of 80390
(This msg. is a reply to 80164 by Sugarpaw.)
Jump to msg. #
Sugarpaw, to piggyback on those thoughts...
I agree that the MMs will have to cover CMKX eventually or... they will be forced to keep funding each stock dividend Urban gives us.
This would like imagining a huge value of the short for CMKX being covered in little pieces through each stock dividend. The thought is that the MMs would eventually realize that after covering enough through the stock dividends, they would then see that all it does is delay the inevitable, covering CMKX.
Keep in mind, each stock certificate is monitored by a stock certificate number that is used for accountability.
What could be happening is that the MMs are routing through the same stock certificate number many times to trick the DTC into thinking that the shares are actual shares that electronically matches with what's in the database as an authorized certificate from their custodian of accounts who received their CMKX certificates from the Transfer Agent.
Since the amounts are listed in bulk, this could be done to mask the amount of CMKX shares being transacted which would explain why everyone has a certificate number on their shares as of today. This is nothing more than the MMs masking the short through sharing of stock certificate numbers as they are transacted through the DTC. Because of the vastness of the market, the DTC would not initially have the time to go back and monitor such transactions unless proof was made prevalent and brought to their attention.
Example: This would be like you buying 10 Million shares CMKX. Your 10 Million shares would be (hypothetically) listed under the cert number of 12345. Consider if the shares are shorted. Now consider if five other people wanted to buy 10 Million shares. What they would do is list it as being under the same 12345 cert number.
This means that 10 + 50 = 60 Million shares would be listed under the cert number of 12345. I think the MMs are banking on there never being a massive pulling of certs for anyone to verify this. These are only some quick thoughts that are only my opinions to consider as another option as to what might be happening too.
All is well!
http://www.sterlingsclass.com/
Sterling
By: stervc
12 Sep 2004, 09:58 AM EDT
Msg. 80274 of 80390
(This msg. is a reply to 80164 by Sugarpaw.)
Jump to msg. #
Sugarpaw, to piggyback on those thoughts...
I agree that the MMs will have to cover CMKX eventually or... they will be forced to keep funding each stock dividend Urban gives us.
This would like imagining a huge value of the short for CMKX being covered in little pieces through each stock dividend. The thought is that the MMs would eventually realize that after covering enough through the stock dividends, they would then see that all it does is delay the inevitable, covering CMKX.
Keep in mind, each stock certificate is monitored by a stock certificate number that is used for accountability.
What could be happening is that the MMs are routing through the same stock certificate number many times to trick the DTC into thinking that the shares are actual shares that electronically matches with what's in the database as an authorized certificate from their custodian of accounts who received their CMKX certificates from the Transfer Agent.
Since the amounts are listed in bulk, this could be done to mask the amount of CMKX shares being transacted which would explain why everyone has a certificate number on their shares as of today. This is nothing more than the MMs masking the short through sharing of stock certificate numbers as they are transacted through the DTC. Because of the vastness of the market, the DTC would not initially have the time to go back and monitor such transactions unless proof was made prevalent and brought to their attention.
Example: This would be like you buying 10 Million shares CMKX. Your 10 Million shares would be (hypothetically) listed under the cert number of 12345. Consider if the shares are shorted. Now consider if five other people wanted to buy 10 Million shares. What they would do is list it as being under the same 12345 cert number.
This means that 10 + 50 = 60 Million shares would be listed under the cert number of 12345. I think the MMs are banking on there never being a massive pulling of certs for anyone to verify this. These are only some quick thoughts that are only my opinions to consider as another option as to what might be happening too.
All is well!
http://www.sterlingsclass.com/
Sterling
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