One Step Ahead

[sugarpaw]

Letter to the Troops

Frizzell update out...(you go Frizzell)...posted by my69z from Sterlings board. Link below. :o) Sugarpaw

May 17, 2005
Letter to the Troops

Greetings to All,
Yesterday, a very supportive shareholder came by the office as he was in town handling other business. During an office tour and subsequent conversation it occurred to me that many of you may not fully understand the task we have undertaken; therefore, the following. .

John and I have conducted many tours of the work areas for quite a number of shareholders in the past weeks, but this particular tour gave me reason to write this letter. The questions from this shareholder were similar to questions asked by most of you in emails and phone calls. However I feel the need to digress for a moment and review the big picture of what our mutual task has become.

War on Naked Shorts
Thousands of CMKX shareholders have invested millions (and possibly billions of dollars) in a micro penny stock having the potential to become a solid long term investment and may enjoy a huge run-up in the short run if progress can continue to be made on several fronts. This investment by shareholders was made during a time when a serious trading technique known as naked shorting flourished in the market place. Most of us knew little of its damaging effects and were willing to risk substantial funds once we heard of the potential value of the claims owned in Canada by CMKX. As we all sit amazed at the unending cellar boxing of our stock, we have joined together to fight the lawbreakers responsible for this illness in the stock market.

Are We Fighting Some Death Spiral Financing?
I will try not to be overly dramatic about the effects on our stock of the market participants that see no problem violating SEC covering rules existing on the SEC books since the passing of the 1934 Act. To add to our challenge, we are slowly learning about another devious financing technique known as death spiral financing: this is a ####### child of naked shorting. The effects are the same for the most part except a takeover by the financier is sometimes an initial underlying purpose. I cannot confirm that CMKX management entered into any such agreement, but I have serious concerns about the distribution of our stock and how certain people came into possession of that stock. I will have more info for you as my investigation proceeds. As I see it, this is merely one more battle for us as a group. As our staff pours over stock transfer records and the NOBO/OBOlists, in conjunction with various pr’s and documents we have found from 2002 and 2003, we are piecing together a very detailed chronology of company events and transactions. I am not sounding an alarm nor am I ready to point fingers, but we are gaining the knowledge needed to proceed and help our company..

The Immediate Task
I took delight in answering questions yesterday regarding the assembly line we have set up to document the share ownership by the vast majority of CMKX shareholders. We have gone to great expense to use current technology to assist us in creating a digital mass of records, which can be presented, in one single CD to anyone requiring proof of the massive short selling of our stock. I read yesterday that Senator Shelby has become interested in looking into the CMKX matter--wouldn’t it be nice if we could hand Senator Shelby and others a single CD proving, without question, that a company’s stock had been naked shorted and that such shorting continues as we speak? Never before has any company sought to gather monthly statements from its shareholders to show what sales have occurred through the brokerage houses as proof of illegal short selling. We have been told we will be lucky to get 20% to 30% of the shareholders to respond to our requests. Fortunately for us, even 20% to 30% will document a massive naked short position in this stock.

Very few of the group’s members have actually seen the final work product of the fax in campaign. When I met with the SEC on the day after the hearing in Los Angeles, I carried with me a 100-page summary containing a line of information for every shareholder that faxed his or her statement into our office. I also carried a CD ROM, which contained a tif. file for each document faxed to us. Any person (Congressman, Judge, or SEC Attorney) can put this CD in his or her computer and have access to the information we have compiled. The first page appearing on the CD reads as follows:

Exhibit __
CMKX DIAMONDS, INC.
Shareholder List
(verified by brokerage statements and issuer current NOBO list)

Total Share Amount: 302,097,079,212

First Name
Last Name
Acct Num
Acct Type
Share Amount
Broker
Cusip
File Name

Each page with the heading above has fifty lines containing the above info on fifty different shareholders. When anyone clicks his or her mouse on any one line, the document pops up in its entirety. It will be difficult for anyone to dispute our evidence when gathered in this way. The ultimate key to our success is to have as many shareholders as possible forward their information to our office so we can document the total owned shares.

Why have companies never taken the trouble to combat the naked short sellers? More often than not the company being victimized is on shaky grounds to start with. Generally, they have a poor product or unscrupulous management. The devastating effects of such short selling have proven effective in bankrupting the targeted companies so in most cases the investors write off the loss and simply swear off pink sheet stock investing. Well, I am proud to say that I represent thousands of shareholders who want to straighten out this mess and are willing to back the company for the fight.

Many Americans have a dream of starting a small company and some day walk it through the steps of becoming a public company. Should everyone have to fear an attack and market manipulation by market makers and hedge funds if they want to start small in the market and work their way up? Should everyone be forced to fear collusion by the brokerage houses and the market makers when you deliver your hard earned dollars to your broker? The answer is a very emphatic NO!

Thus, I encourage you to continue banding together and keeping up the good fight. You would be amazed at what a group of 50,000 people with a common purpose can accomplish. I want to accumulate monthly brokerage statements totaling one trillion shares in this stock. I am confident this goal can be reached in a reasonably short period of time. We are beginning our mail-out campaign today to many shareholders that have not faxed in their share information. I would appreciate your encouragement to those that have not sent their info in for whatever reason. This documentation will serve you well.

We will report to you our progress. Onward, Bill

PS. Check out the newly designed CMKX Owners Group web site at www.cmkxownersgroup.com If you have not already sent in your brokerage statement, go to the web site in the document section and click on the icon titled Naked Short Fax Campaign and follow the directions.

http://www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=215673