By: stervc 27 May 2004, 09:22 AM EDT Msg. 7834 of 32613 Jump to msg. # *CMKX-500 Billion OS Revision Solution*
Everyone, my apologies for giving you a rush job that was fairly close to how a worse case scenario should be considered. From going back and doing some review, I felt some corrections and revisions were in order.
There were some changes that I believe made stronger upcoming thoughts. There were also some typos and a slight increase to the original Outstanding Shares (OS) number to reflect a more accurate worse case scenario. If this is going to really be a worse case scenario, we should presume that the OS is the max which would be 500 billion.
** It was discovered not long ago that Urban raised the AS to 500,000,000,000 to use as an insurance police against any takeover efforts. This would mean that he felt that someone might be trying to take over CMKX as a business entity and could have bought the required 51% of CMKX shares to use as controlling and voting rights for CMKX.
** This would mean that the increase of the OS to 500 billion was to make sure they capture the needed 251 billion of the OS to have as the company’s restricted shares and 249 billion to have available for the float and other uses. This was to create their own insurance policy to prevent any takeover attempts.
** I do believe that the 249 billion shares are shares that were being bought and retired to decrease the OS and the float, but I will still presume the OS to be 500 billion shares.
** Having such a large OS is not an issue because of the value that resides within CMKX. An OS of this magnitude is required to make sure there is enough liquidity for trading purposes.
** Another key thought is to understand that it’s all about “Supply versus Demand” when your shares are trading in the market. Once the float is gone, it’s gone. It doesn’t matter whether or not your OS is 5 million shares or 5 trillion shares. When the float is gone, it’s gone. The revealed value will cause the float to be dried up very quickly once officially released if there is not a short position.
** I do believe that there is a short at/or near the amount of 1 trillion shares. I also believe that Urban helped to create that short to control the significant increases in future share prices in CMKX. Below is a link to the best post I’ve ever seen about CMKX and its naked short position written by an individual named PennyWrangler that is a must see for all to read!
The beauty of this post is that if there really isn’t a short, then the below example should apply as a minimum which was derived from determining the use of a fairly selected Intrinsic Value of $850 billion from the use of residual valuation pricing techniques.
Let’s consider some logical deduction. If that little piece of 58,000 acres of DeBeers could be valued at $40 to $80 billion, surely our now nearly 3 million acres of land that surrounds those 58,000 acres of land of DeBeers could be worth much more. (OK, maybe I know this, but let’s act like I don’t.) Let’s even forget that we “probably” own two thirds of that piece of land too. Keep the theories in the link below in your thoughts too:
What if $40 to $80 billion is the price valuation ratio for every piece of the 58,000 acres of land? This would equate to our pieces of land in the FALC region to be:
3,000,000 ÷ 58,000 = 51.7 groupings of 58,000 acres
Some groupings could be easily valued in the area of $80 billion while some $40 billion for the low side. From my thoughts on what I am expecting to be released from the “rumored” aerial survey results, those groupings could very easily be averaged to reflect value from $40 to $80 billion as what Dr. Hutchison talked about in the interview link below. I think things worked out very well.
Because of such, I think that it will be safe to use $40 billion as a figure for value to include capturing of the now known abundance of copper, gold, zinc, titanium, platinum, and of course plenty of kimberlite and diamonds to say the least that is owned by CMKX.
This would reflect such below as the value of CMKX from most of its resource:
$40,000,000,000 x 51.7 groupings of 58,000 acres = $2,068,000,000,000
Hopefully you can now see how with even using an intrinsic value of $850 billion is very conservative when providing logical deduction as to how CMKX could very well be worth over $2 trillion with its resources.
Since we don’t really know if the $850 billion we are using as the Intrinsic Value is based on an annual, quarterly, or exponential value, we will not need to multiply by a PE Ratio because the growth rate is not known for the residual valuation pricing techniques just used.
Intrinsic Value ÷ OS = Price that CMKX is worth $850,000,000,000 ÷ 500,000,000,000 = $1.70
Keep in mind that 51% of the OS, 251,000,000,000 shares, will be restricted and owned by insiders. This means that the share structure would look as followed:
500,000,000,000 = OS 251,000,000,000 = Restricted Shares 249,000,000,000 = Float
In my opinion, the OS is not going to matter in the big scheme of things for the plan that will be presented. Whatever the amount that’s needed is required to allow for the movement of key deals to be transacted while implementing safety measures at the same time. This is to not impede the Tender Offer to be issued to us for going private while forcing a fair option for covering by the Market Makers (MMs). This is why we do not need a reverse split too.
Expect to see the PRs to justify value and growth of the company and everything else will run its course to justify the numbers I used above. I hope now you can see why in the link below that $1.00 is a good minimum share price to offer to buyout us shareholders for Urban and CMKX to go private.
From the logic above, CMKX could easily be worth $1.70 or more per share. This would no doubt force a naked short covering out of this world. The good thing about this, even if you don’t believe that there is a short, then what was posted above would transpire still as a minimum as we begin to have substance revealed to us from the company.
Urban has a great many friends and family members invested into CMKX at much higher prices than where CMKX is currently trading. Just breaking even is not the goal. Urban is a people person and has a wonderful attitude, understanding, and concern for all shareholders to include us little guys here in RB land which is why he is making sure we get the word first! I trust Urban and his team of experts and so should we all!
All of my thoughts to include those in this post concerning CMKX have been nothing more than “theories” until converted into “facts” by Urban and CMKX. It is still my belief that CMKX will help many to achieve prosperity!
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