Replies to post #207240 on CMKM Diamonds Inc. (fka CMKX)

[janice shell]

Urbie thought race cars were more important.

And Urbie was in fact right. The Funny Car sponsorship was the smartest thing he ever did. I doubt he realized it at the time; I think his original plan was merely to indulge a personal hobby.

But just think how many people attended the races, many, no doubt, spending more money on their trips than their stock was worth. At the meets they were able to talk with Urbie--one even said, amazingly, "He was standing there like a God"--and develop friendships with other CMKX shareholders. The races also reeled in new marks: Melvin said recently that after ever meet he got an avalanche of new inquiries.

If it hadn't been for the Funny Car, I doubt the CMKX cult would be as cohesive as it is today.

Of course we now know that Urbie stiffed practically all of the drag racing people he sponsored, but the True Longs don't like to think about that. lol, if he stiffed THEM, just imagine what he has in mind for shareholders.

[stockhound101]

Nothing, unless the company is selling shares to fund operations and the float is as much as doubled or even more than doubled due to shorting or naked shorting. This shorting would dilute the float and subsequently suppress the share price, in which case the company would be having to sell it's shares for operating expenses at a lower PPS than it would under normal un manipulated market circumstances. This may cause the company to further dilute the float unwillingly in order for the company to pay expenses to survive.
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"Stockhound-and the PPS of a company in the third market has what to do with their operations or the value of their assets?"
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I don't know how much money the company raised, but I would say your figures could be correct and I believe the race cars were an extravagant waste.