CMKM Diamonds Inc. (fka CMKX)

[BadBassPlayer]

Yes, I'm aware the games are only begining. It could be another year or longer for the valuation of CMKX to come around. This is a very good post I read tonight on this exact subject.

CMKX: greatest land package in the world

By: houstontex1110
10 Dec 2004, 10:19 PM EST
Msg. 129981 of 129982
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MESSAGE TO ALL

TRILLIONS AND TRILLIONS OF DOLLARS

Earlier in the year I typed up a post about trillion dollar mineral discoveries, and had misplaced one source. Over the past several weeks, investors in CMKX have become more and more depressed DUE TO THE LOW PRICE. This is extremely important. No where is anyone pointing out a change in the fundamentals upon which this company will succeed or fail.

Years ago I read in a commodity futures analysis that, "Isn't it funny how we all become bulls when the price is rising and bears as the price is falling." You may exclaim So! Actually upon analyzing this bit of psychology, there are immensely useful lessons to put into practice in your life. For example:

1. It is a well known fact that the public will be the main buyers at the top of a bull market in a commodity, and they sell out at the bottom of a bear market. As a commodity's price reaches the very top of its run, there will be far ranging price spikes as the public rushes in and buys. The spiking behavior occurs at the bottom of a bear market as well. What causes these buying frenzies? GREED and selling dumps? FEAR.

2. In contrast, the smart money buys at the bottom of a bear market and is distributing its contracts or shares to the emotional public at the top. As a matter of fact, there are indicators built around these phenomena. For example,they plot on a chart the number of contracts that the public holds long versus the short interest in contracts of the commercials (The firms who actually conduct business in the commodity such as a cereal company or enterprises who grow the corn for instance.) Whenever there exists the largest difference between these 2 groups during the last 4 years, be prepared to follow the commercials since they are the market and are usually correct.

My point is that the public is usually wrong in their timing choices and the smart money correctly times its selling or buying behavior. The public believes that a rise in price to lofty levels authenticates that the stock is a quality company. After all, everyone else is buying it, it must be good...the blind being led by the blind...the herd mentality. The public needs the price to vindicate its choice instead of the fundamentals behind the stock or commodity doing such. Similarly, at a low price, the public contends there must be a problem or else why is it so low? As a point in fact, often they are right. Take a look at all the trash in the pink sheets that are at .0001. But the pros have the ability to search through the trash and find a company such as CMKX with solid fundamentals or sidestep a firm that is all hype.

The smart money (commercials) realizes there are indeed bargains in the stock market and the lower the price the better! I have noticed as the pps of CMKX dropped back to no bid, I read posts that said, "looks like we are maybe finished or a scam?" What an AMATEUR! When Warren Buffet buys a company, he and his team of experts tear it apart using the bible on fundamental analysis written by Benjamin Graham. Once he concludes the security is fundamentally sound, and the price falls even more, he still buys. He considers what great luck.

The pros attempt to determine the reality behind a stock, and the public focuses on price. Price dropping, something must be wrong. Price soaring, company really must be doing great things. Actually, both statements can be true, but the professional looks beyond just pricing behavior.

The fundamentals of CMKX did not drop by 75% over the past 4 months as price dropped from ask of .0004 to .0001. But the mood of more than a few of the investors suggest this company is on the way out! Stop focusing on the price and look at the fundamentals. And the most critical fundamental is 1.9 million acres surrounding Debeers mineral estate. And could our diamonds, gold, silver, platinum and copper be worth a $trillion? Of course, however it may take 20 years to determine that value through thousands of drill holes.

As a comparison read the following: "In the far northern reaches of Canada's Alberta Province, is a vast deposit of sandy, tar-like goo the size of Lake Ontario. Petroleum geologists now agree that these oil sands contain as much as 1.6 trillion barrels of oil-far greater than the rest of the world's oil reserves, combined.

This isn't a new discovery. In the 20th century, oil and automobile companies began lusting after this huge deposit of oil. But one company after another -- beginning with a consortium headed by Henry Ford in the 1930s -- broke its lance against the problem of exploiting it. It was too expensive. You have to process two tons of sand to get a barrel of oil."

Now this little-known company's pioneering technology is unlocking this oil

"This company has been trying to figure out how to extract oil profitably for the last 36 years. It took them a long time, but they did it by adapting techniques used by successful modern mining companies for processing huge volumes of ore.

Faced with this hard evidence, "Oil and Gas Journal" and the industry yearbook "2003 Global Oil Trends" made it official: They jumped Canada's oil reserves from 6 billion barrels to 181 billion" Oil and Energy Investment Report

If the oil industry ultimately proves out the l.6 trillion barrels of oil, at $50 per barrel, that works out to $80 TRILLION. And the discovery is already worth $8.75 trillion.

Just one of our giant oreos could be valued at least $100 billion or more if our diamond grade is equivalent to that of the Australian diamond mine which is currently the most valuable in the world. Why? Our giant oreos are the largest IN THE WORLD, and I am ignoring the fact that gold, copper and silver deposits are associated with volcanic eruptions including kimberlites.

And all it takes is for just one to prove economic out of dozens? Actually we have several hundred anomalies, and I see little problem with our mineral resources valued at 500 billion. Just look at the comparison. The oil sands might be worth $80 trillion. $500 billion is 1/160th of $80 trillion. They have already proven almost $9 trillion which is 18 times my prediction.

My point is this. I read posters who are having a tough time realizing what the potential of our locking up the Sask diamond field. People, I have seen it over and over again in a hot area play. One company rushes in and leases as the saying goes, "the fairway of the play". And that is CMKX.

And over and over again I hear, "Well, if the O/S is $800 billion, I guess we are screwed." Why? Divide 800 billion by $500 billion and the result is over .60 pps. Hey, if we just prove out $50 billion we come in at .06 pps. We may be surprised with a much lower O/S. I expect an O/S of less than 500 billion which could grant us a buck per share someday.

Fundamentally, we just might have the greatest land package in the world. I have researched, reviewed or studied hundreds of mining company's mineral packages, and ours appears to be at least 10 times the best I have ever reviewed.

So stop having fits over the price manipulation that is being jerked around by whom? whom? The smart money, that is whom. They see us as morons or fools who they can control through price adjustments which does not have any connection whatsoever to the underlying fundamentals...the diamonds, gold, silver, copper and platinum in the ground.

Start acting like a pro and focus on the real business of this business and that is mining. Stop worrying about the price. The price will adjust accordingly once we get our share structure worked out. Then, enjoy the growth of an international mining company. Just talk you say. Really? We already have one gold producing mine and 2 more are nearing start up. And the diamond property in Brazil looks very promising and just that one mine will ten times our current .0002. And the net from our upcoming platinum mine appears to be around $4 billion. That too will be a company maker.

UC has nailed down so many possibilities that we virtually can not fail if we can raise the financing and I think that is already in place. Focus on the fundamentals and the financing and forget the price.

By the way, I do not want to come across as someone who is always balanced. I too have emotional swings, and must refocus on the fundamentals. Guess what? The mms are human too and over the past few weeks, they are having very big emotional swings. The key difference between us and them? We got the fundamentals...they got the bashers! And time is on our side as we bring in mine after mine, and time is running out for mms now that Sho is coming down the expressway.


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