CMKM Diamonds Inc (fka CMKX)

[ut2DaMax]

stervc's latest - The SGGM Solution...

By: stervc
29 Oct 2004, 01:25 AM EDT
Msg. 109280 of 109281
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The SGGM Solution...

I feel that there is a very good chance that we will be getting an SGGM dividend for only speculative reasons. Because of such, I think that this post is something that could help to paint a few pictures to understand the magnitude if such was to happen. If such was to happen, I would hope that something along the lines of a "dividend exchange" would take place.

This could create a new type of valuation outside of Fundamental Valuation. I guess we could call this the Parallel Valuation. This would cause a valuation to be placed on each of the related stocks from the price of the other. The increase and decrease of a stock would have a direct correlation with the price of the other.

Let's assume and take SGGM at .50 cents and CMKX at .0002 cents to keep the math simple although we know that SGGM is not at .50 cents right now. If there was an announcement like such:

"For every 1 share of CMKX bought you will be receiving 1 share of SGGM and on the same for every 1 share of SGGM you buy you will be receiving 1 share of CMKX."

Before we go any further, we have got to ask ourselves: Where does CMKX get the 200 Billion shares from to match the 1 for 1 with SGGM to do a dividend exchange?

Well, according to the State of Nevada the AS for CIM was recently changed from 25 million to 500 Billion. This means that the 500 Billion is definitely enough to capture the CMKX shareholders to ensure that everyone received shares in CIM (Casavant International Mining).

This means that the 779+ Billion that was used to capture the CMKX shareholders for the UCAD distribution multiple/ratio was over calculated. This means that I expect to see a correction. This correction would lead me to think that our AS will be changed to a minimum of 500 Billion to mirror the CIM distribution multiple/ratio on our CMKX shares. This leaves 300 Billion shares return back to the Treasury for CMKX to play with for merger/acquisitions and yes, most of all, dividend reasons. This is where they will get the extra 200 Billion shares to do the dividend exchange transaction with the 200 Billion shares of SGGM.

Now consider these correlations if a 1 for 1 dividend exchange would be announced by assuming that SGGM is at the .50 cents and CMKX is at .0002 cents and that the above rationale is correct:

SGGM .50 = CMKX .0002

.50 ÷ .0002 = 2500

So, the ratio of SGGM to CMKX would be 1:2500. This means that for every 1 share of SGGM you buy at .50 cents would be equivalent to 2500 shares of CMKX to be equal in value.

Or in reverse...

CMKX .0002 = SGGM .50

.0002 ÷ .50 = .0004

So, the ratio of CMKX to SGGM would be 1:.0004. This means that for every 1 share of CMKX you buy at .0002 cents would be equivalent to .0004 shares of SGGM to be equal in value.

As you can see, CMKX would be significantly undervalued and immediate valuation should be placed into CMKX at the price of SGGM because of Parallel Valuation.

Now consider if an individual bought 10 Million shares of CMKX at .0002 cents:

Spending $2,000 to get you 10,000,000 shares of CMKX will bring you 10,000,000 shares of SGGM at .50 cents for a $5,000,000 SGGM Parallel Valuation with this scenario.

10,000,000 x .0002 = $2,000 (Your Cost)

10,000,000 x .50 = $5,000,000 (Your SGGM Return)

Theoretically, if SGGM goes up, so does the Parallel Valuation in CMKX. The baseline amounts that would be establish at the dates of the PR, if something like this was to happen, would be the date to set the prices of equilibrium in both stocks to use for measuring Parallel Valuation such as in this example would be .50 cents for SGGM and .0002 cents for CMKX.

Since the Float is low with SGGM, it doesn't take much buying power to make it run. Money could be strategically placed into SSGM to bring along the Parallel Valuation in CMKX to get it jumpstarted towards rectifying the covering process. If enough of the "bad Float" have been absorbed (or eliminated), then CMKX could run a lot higher and faster to enhance the Parallel Valuation more than what SGGM would do because of the larger consideration for percentage gains. This is what I would consider doing if I was Urban for bringing another option to the table of valuation.

Even if the Authorized shares of CMKX were 800 Billion and no correction was ever warranted, then the ratio would be 1:4 for SGGM to CMKX. This would still be awesome as I had previously posted.

This would mean that we would get 1 share of SGGM for every 4 shares of CMKX owned and with the dividend exchange we would get 4 shares of CMKX for every 1 share of SGGM purchased.

This means that when you spend .0002 cents for one share, you will get back in return something in value that is worth .50 cents. This means that if you spend $2,000 for 10,000,000 shares of CMKX at .0002 cents, you will have in return $5,000,000 in value of SGGM at .50 cents.

With still using 10,000,000 shares of CMKX as the example, please further observe. Let’s still assume that Urban decides to give us the 200 Billion shares of SGGM as a basic dividend and not as the dividend exchange model as I mentioned above.

Let’s still assume that our Outstanding Shares (OS) is 800 Billion as a worse case scenario. This would give us a ratio of 1:4 for receiving 1 share of SGGM for every 4 shares of CMKX owned with an end result of value in our accounts of $1.25 Thousand from the logic below:

10,000,000 ÷ 4 = 2,500,000 shares

If SGGM trades at .50 cents then that would have sitting in the account:

2,500,000 x .50 = $1,250,000

Here's another way of looking at this to see the power behind this. With CMKX at .0002 and SGGM at .50 cents, then...

CMKX .0002 = SGGM .50

This means that CMKX should be bought up to the price of SGGM to reach a point of true equilibrium. CMKX would be considered under valued until such point of equilibrium has been obtained.

Because of the logic with Parallel Valuation, the price of one should be directly correlated to the price of the other. Because of the Float of SGGM being absorbed or nearly gone, it would not take much for the price of SGGM to remain stabilized at the .50+ cents range. SGGM would not come down to the level of CMKX and would therefore force CMKX to reach an immediate increase in share price and an immediate increase in valuation.

Any significant news released for SGGM would not only enhance the value in SGGM, but the value in CMKX too! CMKX would be forced to chase the price of SGGM until it reaches an equivalent share price of SGGM. If at any time CMKX surpasses the price of SGGM, then SGGM would be considered undervalued and would be considered such until it reaches an equivalent share price of CMKX.

Receiving a regular dividend in SGGM would be very explosive in itself. This thought of Parallel Valuation through a double dividend exchange would eliminate the thought of SGGM not trading under CMKX as a subsidiary after the pay date of the dividend. This will always lock SGGM and CMKX into one another to actually trade as a subsidiary under each other. This forces one to always bring along the other in valuation.

This is how I think we should do all of our dividends to get full maximization which places immediate huge valuation in CMKX. These are only my opinions as to how I think Urban is going to create many millionaires.

All is well!
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