Post by fastwalker on Apr 27, 2005 8:22:53 GMT -5
I think we all know how short manipulators and toxic financers go hand in hand, however, I haven't really seen anyone bring this up with CMKX.
IMO, it's possible that Urban hatched a deal with a PIPE financier for a sizeable amount of capital in exchange for convertible debt (common practice for pennystocks).
Now, as most toxic financers do, they hardly sit around waiting for the company to actually implement it's business plan, let alone a diamond mining company (which can take YEARS to see profitability).
Instead, two things could have happened:
1) The issuance of toxic paper allowed the financier to "lend" a vast amount of shares to short interests, who then proceeded to short the crap out of CMKX, KNOWING they would be able to cover with the convertibles in the end...this is why toxic financing is a hedgers dream. It would explain JEFF's persistence on the offer for months, since we know NITE's ex-CEO, switched over to JEFF...and frankly, anybody from NITE is a specialist in shorting OTC/PK stocks.
or
2) The financier turned around and started converting his debt into common shares right away, since they did not give a rats asss about CMKX and simply wanted to "dump" their toxic paper and make a quick profit. This also explains JEFF's persistence on the offer, as a sizeable amount of debt would take A VERY LONG time to convert at $0.0001-$0.0012.
-------------------
Toxic financing explains:
1) Why we have Finnerty's work in the exhibit list.
2) Why UC/CMKX have been very tightlipped about the company. Getting screwed over by toxic paper leaves a black eye on the company and management...they need to save face.
3) Why 703B shares have been issued by the company (against their will, but through contractual obligations)
4) Why the T/A can print certs without a problem
I think it's safe to assume that UC is a good guy (everyone who meets him, comes away with a good feeling). However, he also appears have a little naivete in him. Toxic financers shake your hand and promise you the world, all while shorting your company into the ground. They don't care about your company nor your shareholders...they simply want to make their profit, and make it QUICK. Shorting toxic paper is an incredibly lucrative practice that has victimized hundreds if not thousands of OTC companies. It really wouldn't surprise me if the same happened here.
I'm just interested to see how they are planning to dig themselves out of this toxic mess...Maheu obviously has some tricks up his sleeve.
IMO, it's possible that Urban hatched a deal with a PIPE financier for a sizeable amount of capital in exchange for convertible debt (common practice for pennystocks).
Now, as most toxic financers do, they hardly sit around waiting for the company to actually implement it's business plan, let alone a diamond mining company (which can take YEARS to see profitability).
Instead, two things could have happened:
1) The issuance of toxic paper allowed the financier to "lend" a vast amount of shares to short interests, who then proceeded to short the crap out of CMKX, KNOWING they would be able to cover with the convertibles in the end...this is why toxic financing is a hedgers dream. It would explain JEFF's persistence on the offer for months, since we know NITE's ex-CEO, switched over to JEFF...and frankly, anybody from NITE is a specialist in shorting OTC/PK stocks.
or
2) The financier turned around and started converting his debt into common shares right away, since they did not give a rats asss about CMKX and simply wanted to "dump" their toxic paper and make a quick profit. This also explains JEFF's persistence on the offer, as a sizeable amount of debt would take A VERY LONG time to convert at $0.0001-$0.0012.
-------------------
Toxic financing explains:
1) Why we have Finnerty's work in the exhibit list.
2) Why UC/CMKX have been very tightlipped about the company. Getting screwed over by toxic paper leaves a black eye on the company and management...they need to save face.
3) Why 703B shares have been issued by the company (against their will, but through contractual obligations)
4) Why the T/A can print certs without a problem
I think it's safe to assume that UC is a good guy (everyone who meets him, comes away with a good feeling). However, he also appears have a little naivete in him. Toxic financers shake your hand and promise you the world, all while shorting your company into the ground. They don't care about your company nor your shareholders...they simply want to make their profit, and make it QUICK. Shorting toxic paper is an incredibly lucrative practice that has victimized hundreds if not thousands of OTC companies. It really wouldn't surprise me if the same happened here.
I'm just interested to see how they are planning to dig themselves out of this toxic mess...Maheu obviously has some tricks up his sleeve.
