Post by fastwalker on Oct 28, 2004 8:35:57 GMT -5
Putting it all together!! from PB#35Hi Gang:
I do not post here very often. I used to post a lot on Sterlings Board until I was booted. I watch this board very closely though and I appreciate everyone's efforts here especially those of Driller and Frank.
We have seen so much occur with our little investment as of late that I wanted to put my thoughts down for others to chew on. Here I go,
UCAD
To begin with, this little dividend is quickly becoming anything but little. My impression of the last run up (very quick) until the time of the split was based on nothing more than a short squeeze of this dividend. If you look at the news out from that time you do not see anything to support such a bold perentage move in such a quick period of time. Did gold soar to $500 oz?? NO!!. Did UCAD announce the mother load?? NO!! Did they announce a 10QSB showing revenue and profit?? NO!! Basically we all got lucky and made out on a short squeeze that resulted in a 3-1 split. Now we reset the gun and get ready to fire again. Although this time we can not merely rely on a short squeeze. No problem. Rendel stated in the GB interview that the 3Q numbers were shaping up and we can only assume that the 4th quarter numbers will be dynamite when we see them sometime in Feb, 2005. So in effect we did not have to "WASTE" any of these great numbers in trying to boost the stock price and create a split, the squeeze did that for us. So all of the great results to come should send this back up to the $15-$20 price range in a few months. My guess is 3-6 months.
And that is where things really get interesting. Math is a funny little science. The power of multiplying has a way of making dreams come true. Another 3-1 split certainly will make this stock play very juicy for all of us. And that leads me to the next point. Many people have been asking, almost begging, for the restriction to be lifted. Why?? How foolish anyone would be to sell UCAD at this point in time. Furthermore Rendel clearly stated to numerous shareholders at a past race that he will keep splitting the stock every time it reaches that magic high we just saw. Furthermore he also stated that when UCAD becomes profitable, he will look to declare cash dividends. Now think about it folks, after one or two more 3-1 splits how many shares will you have now?? then multiply that by a cash dividend amount. UCAD will be building real wealth for all of us who have patience.
CMKX
Gold, Uranium, and of course diamonds. WOW!! Lets break it down further. The gold mine PR may be the biggest PR we have received to date. Here is why:
1) It provides real and substantial revenue to further the cause of searching for diamonds. A past PR noted that CMKX would buy more drilling equipment and so a revenue stream will allow this to happen.
2) The biggest threat that faces a pink sheet company other than naked shorting is solvency. So many companies never make it because they never get off the ground and go bankrupt trying. This type of revenue says to me that CMKX will be around for the long haul. Remember, mining is expensive, very expensive, and so cash is truly king here.
3) This mine appears to be somewhat of the motherload as far as gold goes, and also has a substantial infrastructure in place. Coupled with UCAD's help to improve effciency, this puppy should be a cash cow for years to come.
4) If you take one thing from my entire rambling please note the following. There are many ways to get onto the AMEX. But 3 of the 4 ways require a share price of $3 or more as one of the requirements. Pigs will likely be flying overhead before that happens. But the fourth way has a list of requirements which we met except for one thing until this mine came along, and that is pre-tax income of $50m per annum. Based on Topo's statements on the audio MP3 it appears the goal for the mine is 1,000 tons of ore per day to process. We can all agree based on industry standards that 1oz of gold per ton is the norm. That means 1,000 ozs per day x $425 oz = $425,000 per day before expenses. We supposedly own 75% of this mine, so figure $318,000 is ours per day. Multiply that by 365 days a year, which these mines normally operate and that comes to $116M. Not only some serious bank but also more than enough to get us onto the AMEX.
And just what does the AMEX mean for CMKX. Well it means at least two things.
1) It is nearly impossible for the stock to be naked shorted on this exchange due to the way the market is regulated and the stocks are traded.
2) It provides tremendous exposure and legitamacy for the company and will bring an influx of big time investors, many of which will be non-retail. These are the folks who will make us rich. They will be buying our shares.
Lastly, here is what I see playing out in the next 30 days. The filing will be released and based on too many "insiders" and folks close to this thing, the o/s is going to be pleasantly low. What this means is that not only are we not as diluted as we thought but we are also not going to see any type of reverse split some folks fear.
The net result will be an adjustment of dividends and the new numbers will blow everyone's minds. A new short squeeze will be on for UCAD, CIM and GEMM. Remember, the UCAD shares have already been dished out so the MM's truly need to go out and find shares in order to cover. They can not simply buyback CMKX now since the date of record has come and gone. This may push UCAD to the forward split level quicker than my 3-6 month estimate. Gemm will run and if CIM has been made public then this too will see a short squeeze.
In closing, I just want to again thank so many of the wise folks on this board. Driller, has not only been calling some of these events before they happen, but his messages in the past few days speaking of how CMKX and UCAD are moving at light speed and that this is such a once in a lifetime investment to be involved with is so true in my mind.
I wish everyone would not get their hopes up regarding the party. I think we can all agree that UC has a big heart and mereley wants to thank shareholders. Expect no news this weekend and you will not be disappointed.
Start to think of this investment as a long term play and you will be much happier. Realize everyone that a year should be everyone's goal with CMKX if possible. The capital gains rates drop off big time after a year and so becoming filthy rich before a year simply means Uncle Sam becomes filthy rich and you merely do OK.
Consider yourselves lucky to be a part of this opportunity of a lifetime. It is like standing in Bill Gate's garage and talking to him about his big idea. We are very lucky indeed.
IMVHO
Brown1972
Good read...well thought out...
