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Post by fastwalker on Oct 20, 2004 19:44:07 GMT -5
 on Today at 03:50am, Thoe99 wrote:I'm still trying to find out how the MM's covered for last year's CIM dividend. It came and went without a glitch. I've asked this on two occasions so far on this board, but no one seems to know. A MM cannot short shares in a private company, period. THINK, what is a short transaction; borrowing shares from a shareholder to sell to another party. Three parties/positions to the transaction; share owner, MM, short owner. Firstly, shares in a private company cannot be simply traded. A shareholder typically has only one place to sell his shares, back to the company, basically the other shareholders collectively. The share price is negotiated at that time and the company writes a check for the negotiated value. PPS is not a market-driven value. It is whatever the two parties to a private transaction can agree upon. It is more like buying a house than a publicly traded security. Secondly, it is probably forbidden by terms of the company's by-laws. Thirdly, even if someone were to somehow manage to circumvent the company's by-laws, and were somehow able to negotiate a PPS, who would determine if the price actually went down so that profit could be made on the transaction, which is of course the objective in the first place. THERE ARE NO MARKET FORCES AT WORK TO DETERMINE PPS. So people, please stop talking about how the MMs "shorted" CIM, or how they "covered" CIM. The MMs had nothing to do with that. The company simply printed up the necessary number of shares and mailed them out. There is no oversight or involvement from the SEC, the DTC, or anyone else. The company can do whatever it pleases. It, dilution by the company, becomes a matter of judgement, prudence, but not regulation. JMHO, Gerbs
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Post by fastwalker on Oct 20, 2004 19:45:13 GMT -5
Author Topic: *** E-Trade knows about the Bomb --------------------------------------------------------------- At first i didnt think much of it because, i thought that the amount of shares meant the amount we were going to recieve. I could not see myself making 50k cash that easy, then I realized something. Since CIM is private and not public, maybe cim was a cash divy in disguise from roger glenn. Since we believe that the shorts are short on ucad and gemm, they would certainly be short on cim as well. Therefore in the event of a cim tender offer, they would have to pay the amount per shares they are short. Basically Roger Glenn created a cash divy for free. MM's paying it almost in full. Therefore Roger can decide what amount Urban can pay on legit shares and the rest is on the MM's. If we saw a .05 or better buyout of cim, that would make cmkx free for eveyone no matter where they bought in. Therefore, this is what the bomb could be, and the reason everyone will want to be at the pary. Heck if the buyout is for .54 it would be great. 1 million shares yields 25,600 shares of CIM. Now .54 x 25,600= $13,824 $13k certainly is not $540,000 but it is a much more realistic figure and one that I as many others will certianly be satisfied with, Plus we still hold cmkx. You may ask, why would they not just pr a standard cash dividend. To answer I would say that Urban has said he has wanted to reward long term shareholders, hence the record date was weeks ago. He would also not want daytraders to get a free ride. I am sure there is another reason, but i think the main thing is rewarding those that have been with the company the longest. I see this as the way that we make a good amount of money while holding a company that may have 800 billion shares and at best may have a move to .002 in the future. Roger could have pulled off enourmous value here for Urbans sharholders with one of the highest O/S amounts in a stock in history -------------------------------- I LOVE IT I LOVE IT YES Budgieboo is flip flopping a lot lately TO DSA MOON!!!!!!!!!!!! Ps. I think its funny that i keep using rogers name instead of the ceo casavant for what the company strategy is. LOL 8-)source: both above...PB#32
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Post by fastwalker on Oct 20, 2004 23:37:09 GMT -5
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Post by fastwalker on Oct 20, 2004 23:41:56 GMT -5
:)Posted by: Drillbit In reply to: None Date:10/20/2004 5:00:04 PM Post #of 18932 Interesting: cmkx.proboards35.com/index.cgi?board=general&action=display&thread=1098287625I must admit, I was a little adamant about the rumor yesterday that we were getting a cash tender offer, but today with some additional info I can now see a possible scenario. The tender offer will not be cash, it will be CMKX restricted shares. I can now see the additional 300 billion added to the AS back in August (remember that ) that will be used to pay this tender offer for our CIM dividend. Now, we have seen what the dividend payment has done for both UCAD and GEMM - it seems the MM's are more willing to cover our distribution shares rather than our CMKX shares. Enter a CMKX share tender offer for the private distribution of CIM. The MM's now have no choice but to cover CMKX since they are now part of the CIM distribution We'll see if this is really happening. There is no proof of this yet, but it makes much more sense than the cash tender offer being bandied about yesterday CMKX as the dividender and dividendee - what a concept !!!!! Cyrano We all need to work together in this snake infested swamp called the market. If we share DD and ideas, we all have a better chance to make money.  |
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