CMKM Diamonds Inc (fka CMKX)

[Sec 10]

So, billy, I guess Matthews is lying, eh?

To the extent that "naked shorting" occurs at all, it results from MM's taking a trading position under the guise of their market making activities. Those are almost always short term, however, not the long term and increasing position that the cult believes in. Retail sellers simply cannot sell short without a locate, including the evil hedge funds.

The total dollar value of fails due buyers on any given day is a paltry $3 billion dollars, although the dramatic decrease in fails since SHO indicates that it's probably down down to about $1.8 billion.

It's a minor problem, and in the case of penny scams, a total myth used to draw in the suckers. The only "naked shorting" of pennyscams are CD holders and warrant holders selling in advance of taking delivery.