Further Discussion On Share Retirement...
I cannot speak for georgeburns, but I will speak to an issue that some have brought up in response to his post.
Some have said that gburns's post is suggesting complete float retirement like sterling did months ago. I disagree and promise to explain later in this post. I feel it is a stretch on some of what Gburns offers because I am not following how CMKX buying us out at .0002 to go private will make us happy. But I will respectfully offer something based on his fine post which paints a more optimistic end than a .0002 buyout.
BUT, THE MAIN FOCUS of his post, I AM VERY MUCH ON BOARD WITH BECAUSE IT SHOWS MUCH LIKE MY POST IN AUGUST DID HOW THE O/S and FLOAT CAN BE REDUCED THROUGH ON GOING RETIREMENT! Quoting from gburns's post:
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"CMKX can reduce the float to whatever they want.
Why did Urban need to increase the OS and sell shares into the market in order to reduce the float? Why didn't he just buy up the naked short shares that the bad guys were selling already?
If he did that, the market makers would notice the increased demand and raise the price accordingly.
CMKX had to keep the price down, by increasing actual supply and dilution into the market.
All shares sold by CMKX made .0002 for CMKX. All share dilluted into the float were bought back at .0002. Cost nothing.
Graphic. (sorry, working fast)
The cost to CMKX was the cost of buying the naked short shares that were sold at the same time as recycling the shares he was actually releasing into the market. Had to pay at least .0002 to buy shares.
I have theorized before based on the facts that CMKX ACTUAL FLOAT has to be below or around 50 Billion based on USCA losing controlling interest in GEMM. Others have traced the actual shares issued before going dark (non reporting) till now and found the ACTUAL FLOAT to be around 50 Billion. I will provide links if necessary.
CMKX needs to reduce the float to as little as possible. As little as possible is, the ACTUAL FLOAT minus Shares held in certificate by individual share holders. IF the ACTUAL FLOAT is 52 Billion and Cert holders have 2 billion, then the minimum the float that CMKX can buy it back down to is 50 billion. CMKX knows how many individual shareholders have certs via the audit at the transfer agent."
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Ok if he stopped here, that is exactly the intent of my post back in AUGUST. O/S and Float reduction to these levels is an OUTSTANDING prospect IN ITSELF ALONE. For my money, he could have said, 'period, end of story' right here.
Folks this prospect of reduction to these levels, plus any evidence by Atty Glenn of illegal NSS, shoots our pps up by itself, and lays the groundwork for good news and pr's to follow.
However, gburns continues:
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"How does CMKX afford to buy back 50 billion naked short shares and KILL THE FLOAT? 50 billion x .0002 = 10 million dollars. St. George Metals Inc, just so happened to pay the company 10 million dollars. UCAD gave us money too.
OK... Float is Crazy low now. Now what?
Tender offer for the rest of the float. Buy the company private. Bunch of people rich cause the MMs are responsible for the NSS they made. CMKX responsible for the shares in the float that are on the books only."
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Here's the only part I'm not following guys, but I stil see much potential in what he says. GB, I'm not picking on you. Your post is outstanding, and it is only by good thoughts being offered that ideas can be hashed out further. So here goes my take on this area the post...
Using his example, GB assume the floats is 52. I'll again state how this alone is a great prospect, and the reason I felt the same scenerio existed back in August when the 800 billion A/S had cast a shadow over all of us. At the time, my thoughts were the only bright spot I saw. Looking at my post at the time and Gburns's post now, we basically looked at the 800 Billion A/S from the 2 different angles. Mine was saying at the time the 800 billion A/S was a bluff to get the price of the shares lower, so UC and CMKX can retire more and more of the O/S and Float. GBurns is showing us how by actually authorizing the 800 billion shares that the O/S and Float can effectively be reduced greatly.
However, if CMKX reports a float of 52 Billion (or a number around that), the market will react positively and I contend push the price higher. I'm not clear how being bought out at .0002 for the company to go private versus the prospect of the pps rising for us based on a 52 Billion O/S, is good for us. I'm contending that our pps would rise and we would have the choice to hold or to easily sell our shares at levels well above .0002.
However, if I may take the liberty, let's discuss semantics for only a bit, then I would like to humbly take this part of Gburns's post and offer a bright ending.
I opened the post by saying others were comparing gburns post to Sterling's because of they both got to a zero float. I'm not going to review Sterling's a a few months back. But in contrast, GB suggests float reduction to a level of 50-52 billion shares. His float buyout of .0002 is not saying we have a zero float, or even correct to say we have killed the float. He states the float is 52 billion and our shares will be bought out. He writes of a buyout. period...not a true zero float as has been wildly theorized, where we still somehow still own all of our CMKX shares but the float is zero. Sterling's assumed a zero tradable float based on different assumptions than discussed here. A buyout is a buyout. A zero float where we still own shares and yet we still show CMKX shares in our brokerage accounts, is from a market from another planet, and something I haven't seen in 20+ years of following the market. Like I say, I think this is a simple point of semantics.
Ok, now the juicy part. I can see share reduction and retirement to levels that would pleasantly surprise the market based on what he offered. And I'll stay with his assuption of the tradable float being 52 billion tightly held shares. We longs see the potential and won't be quick to give them up easily at a cheap price. : ) So with this, instead of CMKX going private for .0002, I see other opportunities opening up:
With the announcement and realization of a low tradable float, let's assume the 52 billion shares, our share price WILL RISE. I would say to levels we saw this summer or a bit higher even without any other news.
Next, if there is a NSS issue, any squeeze will take us even higher.
Next, as good news is known and issued in pr's, A LOT OF MONEY NOW ON THE SIDELINES WILL COME ABOARD QUICKLY AND SURELY. This again presents opportunity for upward pressure on the pps.
Last, with 52 billion being confirmed as the float, if the O/S is also low, opportunities for buyouts from larger players may come our way at bids far higher than .0002. The 52 billion float will make CMKX an enticing target for buyout from cash rich companies.
All in my opinion.
Be well,
Bo
AI
