Post by fastwalker on Sept 21, 2004 12:57:25 GMT -5
Explanation of the 7/18 PR by DrD
source: phaedrus19
This is a very well thought out move by Urban and D. Roger Glenn. The announcements in this PR show us who we have guiding this company and that they know how to get things done in the order they need to get done in. Many wondered about the R/S that UCAD had at 125 to 1 in January 2004, but it could be that Urban’s plan was already in action. UCAD and CMKM Diamonds have been side by side next door neighbors in Vegas for a while. Let me mention two important events about UCAD.
UCAD notes =
1. As of May 18, 2004, the issuer had 7,770,745 shares of common stock issued and outstanding.
(The closing value Friday is $3.40 per share) www.pinksheets.com/quote/quote.jsp?symbol=UCAD
2. COMMON STOCK - In January 2004, the Company approved a 125-to-1 reverse stock split of its common stock. Accordingly, the accompanying financial statements have been retroactively adjusted from inception.
secfilings.nasdaq.com/filingFrameset.asp?FileName=0001019687%2D04%2D001152%2Etxt&FilePath=%5C2004%5C05%5C21%5C&CoName=U+S+CANADIAN+MINERALS+INC&FormType=10QSB&RcvdDate=5%2F21%2F2004&pdf=
Now lets take into consideration our latest PR in CMKX. We will look at it in two segments.
-----------------------------------------------------------------------------------------------------------
DENVER, Jul 18, 2004 (BUSINESS WIRE) --
CMKM Diamonds, Inc. (Pink Sheets:CMKX) is pleased to have reached a purchase agreement with U.S. Canadian Minerals, Inc. (OTC BB:UCAD) to which U.S. Canadian Minerals Inc. will be purchasing 5% of all mineral claims held by CMKM Diamonds, Inc. in exchange for 7.5 million shares of UCAD. CMKM Diamonds, Inc. will later issue these shares to all shareholders of record on August 20, 2004.
In addition, UCAD has a 1 year option agreement to purchase an additional 10% interest of all mineral claims held by CMKM Diamonds, Inc. for a total of $15 million U.S. dollars payable to CMKM Diamonds, Inc.
--------------------------------------------------------------------------------------------
Lets see if we can get some understanding out of this thing.
1. We have reached a purchase agreement with UCAD. – This says that we have reached an agreement to purchase 7.5 million shares of UCAD for 5% of all claims held by CMKM Diamonds (CMKX). The 5% of all claims doesn’t necessarily mean we are selling and giving up any claims in particular but rather that UCAD now has 5% interest in all of our CMKX claims in totem. This is pretty well thought out because we now have about 49% of the O/S in UCAD and giving this 5% claims agreement is like paying ourselves.
Too, one of the grand parts of this is that UCAD only has about an 7.7 million O/S as of May 18, 2004 and you add another 7.5 million for CMKX and that makes it 13.2 million O/S. Not only does CMKX have 49% of UCAD but the float on an O/S of 13.2 million has to be in the thousands or 100’s of thousands. What does that mean?
That means that with the statement that came out in the PR showing CMKX’s intentions of giving these shares to the shareholders then that puts a squeeze on the market makers and brokerage firms that have naked short sold CMKX like they can’t imagine. How is that?
Lets say there are only 1 million naked short sells (although it is likely to be in the 100’s of billions) with a float of 100,000 for UCAD. The market makers and or brokerage firms will have to pay to the naked short positions any share dividend CMKX gives to their shareholders. Quite frankly they can’t do that.
The volume for UCAD in the last 6 months could be summarized like this:
1. Only 4 days of trading volume over 100 thousand
2. Only 9 total days of trading volume over 50 thousand
3. Only 12 total days of trading volume over 25 thousand
4. All of the other days of trading volume were in low thousands to only hundreds
Thus showing a potential short float of possibly 10 thousand or less.
Therefore in my opinion it would be impossible for the market makers and brokerage firms to cover the naked short shares with UCAD shares meaning they will have to COMPLETELY COVER ALL NAKED SHORT SELLS to CMKX or be exposed for all to see.
The MM’s do have another option of actually trying to buy UCAD shares at $3.40 plus per share to cover the naked short positions they would owe in share dividend to CMKXers, but we all know that isn’t going to happen.
In my absolutely humble opinion, the MM’s and brokerage firms will be scrambling to cover Monday morning and I see no way out of it at this time.
What does that mean? Depending on the total naked short sell position and any CMKXers that are crazy enough to want to sell. The short squeeze is on. The fewer that are ready to sell the higher the PPS will have to go to make the pay off for investors worth the sell. How high can it go? Depending on the number of actual Naked short sells that have to be covered and the strength of investors to hold out for more. If we do have a huge naked short position against the MM’s say in the neighborhood of 100 billion (est by many to be 1 trillion) then the float for CMKX is all the MM’s can use to cover their positions. We are the float and if we don’t sell then the PPS has to keep climbing until the float increases to the point of the MM’s paying out there 100 billion or more naked short sell positions to CMKXers.
Don’t be surprised if the PPS doesn’t jump early Monday or at all Monday! Why? Because the MM’s are going to try and disguise the fact that they are in a pickle with a naked short sell position. If they open very high to try and get the shares then others will see the dilemma is real and will begin holding out for more.
In my opinion I look for the MM’s to lay back like nothing is wrong and try and keep the PPS down as to discourage investors into believing there is no naked short position or gap up in price coming and thus deceiving them into selling. Don’t think that many won’t be fooled by this because they will.
Don’t be deceived by anything the MM’s do over the next few days. This maneuver by Urban and D. Roger Glenn is intentional, well thought out, and brilliant. Whatever you do, if you can, hold, hold, hold!
The record date of 20 Aug 2004 is just as ingenious for the MM’s now have an absolute deadline before them and all issues with naked short sold securities have to be settled by this date or else. Every one. This gives them room to cover without backing them into a corner where they can’t get out. We are not interested in killing off MM’s only putting a limp in their stride and hopefully teaching them a lesson they will never forget.
The additional comments on this first section of the PR:
“In addition, UCAD has a 1 year option agreement to purchase an additional 10% interest of all mineral claims held by CMKM Diamonds, Inc. for a total of $15 million U.S. dollars payable to CMKM Diamonds, Inc.”<br>
This is a guaranteed wave 2 on the MM’s or anyone else that tries to hold out through the deadline. This can be exercised anytime during this set year such as on 21 Aug 2004 if the MM’s manage somehow to miraculously slip through the first deadline. Some see 10% at $15 million when the first 5% was at a net worth of 25.5 million as discouraging. That is silly. We, as CMKXers, will have 49% of the O/S of UCAD and it would be taking from the left hand to pay the right hand.
This second option on hand for another round of kicking MM and brokerage firm butt is not intended to diminish neither the long term possibilities of CMKX nor our new dividend investments in UCAD. It is what it is: A GUARANTEED ROUND 2 and then 3 and 4 if the MM’s or anyone else wants it. We all know they don’t.
Mr. Rendall Williams, CEO for UCAD, stated: "Having the opportunity to have worked with the management of CMKM Diamonds, Inc. on the Carolyn Pipe and on the Goldak Airborne surveys, we are looking to move aggressively forward in building shareholder value for both companies."
Urban Casavant, CEO CMKM Diamonds, Inc., stated: "We are looking to move forward as a team in order to create a winning formula for success of both companies as well as their shareholders!" More details will be released in future news releases.
This is another phase of the 1 - 2 punch. The key words here by Mr. Williams are “we are looking to move aggressively forward” and “in building shareholder value for both companies.” And Urbans key words are “We are looking to move forward as a team” and “in order to create a winning formula for success of both companies as well as share holders”.
We now have an incredible partner in getting the MM’s off our back and keeping the MM’s off our back. The aggressive forwardness shows that all delays are behind us and both agree the time is now to move forward with establishing sound value for both companies. Urban carries the shareholders a little closer than Mr. Williams did by calling us a “team” and thus co-creators of a winning formula for company and share holders.
This answers one of the question’s I posted early this morning about the How and When. This is only the beginning of this thing so don’t get antsy and sell. We still have incredible variables in play that can increase this soon to come boost exponentially. We all knew the naked short sell position would have to be dealt with before any true share structure and PR’s could be released with any significance so we can experience full impact of the great news ahead.
I will reiterate what I have said in the past that:
“This is not the end, this is not even the beginning of the end, but it is perhaps the end of the beginning.” Dr.D
I have to run. More thoughts will come later.
Success to all!
Dr.D
source: phaedrus19
This is a very well thought out move by Urban and D. Roger Glenn. The announcements in this PR show us who we have guiding this company and that they know how to get things done in the order they need to get done in. Many wondered about the R/S that UCAD had at 125 to 1 in January 2004, but it could be that Urban’s plan was already in action. UCAD and CMKM Diamonds have been side by side next door neighbors in Vegas for a while. Let me mention two important events about UCAD.
UCAD notes =
1. As of May 18, 2004, the issuer had 7,770,745 shares of common stock issued and outstanding.
(The closing value Friday is $3.40 per share) www.pinksheets.com/quote/quote.jsp?symbol=UCAD
2. COMMON STOCK - In January 2004, the Company approved a 125-to-1 reverse stock split of its common stock. Accordingly, the accompanying financial statements have been retroactively adjusted from inception.
secfilings.nasdaq.com/filingFrameset.asp?FileName=0001019687%2D04%2D001152%2Etxt&FilePath=%5C2004%5C05%5C21%5C&CoName=U+S+CANADIAN+MINERALS+INC&FormType=10QSB&RcvdDate=5%2F21%2F2004&pdf=
Now lets take into consideration our latest PR in CMKX. We will look at it in two segments.
-----------------------------------------------------------------------------------------------------------
DENVER, Jul 18, 2004 (BUSINESS WIRE) --
CMKM Diamonds, Inc. (Pink Sheets:CMKX) is pleased to have reached a purchase agreement with U.S. Canadian Minerals, Inc. (OTC BB:UCAD) to which U.S. Canadian Minerals Inc. will be purchasing 5% of all mineral claims held by CMKM Diamonds, Inc. in exchange for 7.5 million shares of UCAD. CMKM Diamonds, Inc. will later issue these shares to all shareholders of record on August 20, 2004.
In addition, UCAD has a 1 year option agreement to purchase an additional 10% interest of all mineral claims held by CMKM Diamonds, Inc. for a total of $15 million U.S. dollars payable to CMKM Diamonds, Inc.
--------------------------------------------------------------------------------------------
Lets see if we can get some understanding out of this thing.
1. We have reached a purchase agreement with UCAD. – This says that we have reached an agreement to purchase 7.5 million shares of UCAD for 5% of all claims held by CMKM Diamonds (CMKX). The 5% of all claims doesn’t necessarily mean we are selling and giving up any claims in particular but rather that UCAD now has 5% interest in all of our CMKX claims in totem. This is pretty well thought out because we now have about 49% of the O/S in UCAD and giving this 5% claims agreement is like paying ourselves.
Too, one of the grand parts of this is that UCAD only has about an 7.7 million O/S as of May 18, 2004 and you add another 7.5 million for CMKX and that makes it 13.2 million O/S. Not only does CMKX have 49% of UCAD but the float on an O/S of 13.2 million has to be in the thousands or 100’s of thousands. What does that mean?
That means that with the statement that came out in the PR showing CMKX’s intentions of giving these shares to the shareholders then that puts a squeeze on the market makers and brokerage firms that have naked short sold CMKX like they can’t imagine. How is that?
Lets say there are only 1 million naked short sells (although it is likely to be in the 100’s of billions) with a float of 100,000 for UCAD. The market makers and or brokerage firms will have to pay to the naked short positions any share dividend CMKX gives to their shareholders. Quite frankly they can’t do that.
The volume for UCAD in the last 6 months could be summarized like this:
1. Only 4 days of trading volume over 100 thousand
2. Only 9 total days of trading volume over 50 thousand
3. Only 12 total days of trading volume over 25 thousand
4. All of the other days of trading volume were in low thousands to only hundreds
Thus showing a potential short float of possibly 10 thousand or less.
Therefore in my opinion it would be impossible for the market makers and brokerage firms to cover the naked short shares with UCAD shares meaning they will have to COMPLETELY COVER ALL NAKED SHORT SELLS to CMKX or be exposed for all to see.
The MM’s do have another option of actually trying to buy UCAD shares at $3.40 plus per share to cover the naked short positions they would owe in share dividend to CMKXers, but we all know that isn’t going to happen.
In my absolutely humble opinion, the MM’s and brokerage firms will be scrambling to cover Monday morning and I see no way out of it at this time.
What does that mean? Depending on the total naked short sell position and any CMKXers that are crazy enough to want to sell. The short squeeze is on. The fewer that are ready to sell the higher the PPS will have to go to make the pay off for investors worth the sell. How high can it go? Depending on the number of actual Naked short sells that have to be covered and the strength of investors to hold out for more. If we do have a huge naked short position against the MM’s say in the neighborhood of 100 billion (est by many to be 1 trillion) then the float for CMKX is all the MM’s can use to cover their positions. We are the float and if we don’t sell then the PPS has to keep climbing until the float increases to the point of the MM’s paying out there 100 billion or more naked short sell positions to CMKXers.
Don’t be surprised if the PPS doesn’t jump early Monday or at all Monday! Why? Because the MM’s are going to try and disguise the fact that they are in a pickle with a naked short sell position. If they open very high to try and get the shares then others will see the dilemma is real and will begin holding out for more.
In my opinion I look for the MM’s to lay back like nothing is wrong and try and keep the PPS down as to discourage investors into believing there is no naked short position or gap up in price coming and thus deceiving them into selling. Don’t think that many won’t be fooled by this because they will.
Don’t be deceived by anything the MM’s do over the next few days. This maneuver by Urban and D. Roger Glenn is intentional, well thought out, and brilliant. Whatever you do, if you can, hold, hold, hold!
The record date of 20 Aug 2004 is just as ingenious for the MM’s now have an absolute deadline before them and all issues with naked short sold securities have to be settled by this date or else. Every one. This gives them room to cover without backing them into a corner where they can’t get out. We are not interested in killing off MM’s only putting a limp in their stride and hopefully teaching them a lesson they will never forget.
The additional comments on this first section of the PR:
“In addition, UCAD has a 1 year option agreement to purchase an additional 10% interest of all mineral claims held by CMKM Diamonds, Inc. for a total of $15 million U.S. dollars payable to CMKM Diamonds, Inc.”<br>
This is a guaranteed wave 2 on the MM’s or anyone else that tries to hold out through the deadline. This can be exercised anytime during this set year such as on 21 Aug 2004 if the MM’s manage somehow to miraculously slip through the first deadline. Some see 10% at $15 million when the first 5% was at a net worth of 25.5 million as discouraging. That is silly. We, as CMKXers, will have 49% of the O/S of UCAD and it would be taking from the left hand to pay the right hand.
This second option on hand for another round of kicking MM and brokerage firm butt is not intended to diminish neither the long term possibilities of CMKX nor our new dividend investments in UCAD. It is what it is: A GUARANTEED ROUND 2 and then 3 and 4 if the MM’s or anyone else wants it. We all know they don’t.
Mr. Rendall Williams, CEO for UCAD, stated: "Having the opportunity to have worked with the management of CMKM Diamonds, Inc. on the Carolyn Pipe and on the Goldak Airborne surveys, we are looking to move aggressively forward in building shareholder value for both companies."
Urban Casavant, CEO CMKM Diamonds, Inc., stated: "We are looking to move forward as a team in order to create a winning formula for success of both companies as well as their shareholders!" More details will be released in future news releases.
This is another phase of the 1 - 2 punch. The key words here by Mr. Williams are “we are looking to move aggressively forward” and “in building shareholder value for both companies.” And Urbans key words are “We are looking to move forward as a team” and “in order to create a winning formula for success of both companies as well as share holders”.
We now have an incredible partner in getting the MM’s off our back and keeping the MM’s off our back. The aggressive forwardness shows that all delays are behind us and both agree the time is now to move forward with establishing sound value for both companies. Urban carries the shareholders a little closer than Mr. Williams did by calling us a “team” and thus co-creators of a winning formula for company and share holders.
This answers one of the question’s I posted early this morning about the How and When. This is only the beginning of this thing so don’t get antsy and sell. We still have incredible variables in play that can increase this soon to come boost exponentially. We all knew the naked short sell position would have to be dealt with before any true share structure and PR’s could be released with any significance so we can experience full impact of the great news ahead.
I will reiterate what I have said in the past that:
“This is not the end, this is not even the beginning of the end, but it is perhaps the end of the beginning.” Dr.D
I have to run. More thoughts will come later.
Success to all!
Dr.D