Post by fastwalker on Oct 17, 2004 18:19:07 GMT -5
;D
CMKX Spin Off's
« Thread started on: Today at 5:04pm » <br>
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It is a pleasure to be able to share information with everyone on the board. This is just a thought I was kicking around this morning.
I would like to bring to light an observation and some information that others may have possibly overlooked. This has to do with CMKX value, shareholder value, and market values. I am no accountant by any stretch of the imagination so be gentle. If CMKX is dispensing all of the shares they are receiving from UCAD, GEMM, and CIM then the company is not increasing in value, but rather decreasing because they are giving up cash and percentages of the company and retaining little in return. In short, we as shareholders actually receive the increase of the value that the company has decreased in value.
Usually a dividend is paid out of revenue generated by the operation of the company and not a sell off of the company’s assets. Dividends typically come from revenue generated, but when it comes out of the company’s capital it is considered differently. If it is revenue being distributed then the company does not decrease in value but is actually sharing the profits generated. We are actually receiving Spin Off’s from CMKX which can easily be confirmed by your broker. A Spin Off by definition occurs by a corporate action through which the corporation divests an asset or assets by distributing part or all of the asset(s) to its shareholders. These assets are typically equity ownership in another entity such as the 7.5 million shares of UCAD that CMKX received in payment for 10 percent of the company. What would be expected with a Spin Off would be the same with other forms of similar corporate distributions and that being that the value of the shareholder’s original shares is reduced by the value of the asset received. The market value of the shareholder’s total investment, however, remains unchanged.
Typically a Spin Off will reduce the share value in the market place for the company releasing the assets to the shareholders, but the shareholders value remains the same due to the value of the assets received.
For example, in a typical Spin Off we will assume that there are 100,000 shares of URBAN Co. common stock outstanding and that each share has a market value of $100 per share. The total market value of URBAN Co. is $10,000,000.
100,000 O/S X $100 per share market value = $10,000,000 Total Market Value
On top of this let us assume that URBAN Co. owns 100,000 shares of MELVINS Resources, Inc., valued at $30 each. URBAN Co.’s equity investment in MELVINS Resources, Inc. is worth $3,000,000
100,000 shares X $30 per share market value = $3,000,000 Total Market Value
URBAN’s Co $10,000,000 market value includes the $3,000,000 TMV from MELVINS Resources Inc.
A Spin Off from URBAN’s Co., of its MELVIN’s Resources Inc. shares held to it’s shareholders would reduce the market value of Urban’s Co by $3,000,000. This would be seen in the market place as a reduction in the PPS of URBAN’s Co., from $100 per share to $70 per share because of the $30 per share valuation reduction by the spin off.
In CMKX’s case this is really being manipulated by the market makers. Currently we have a market valuation of .0002 per share of CMKX. CMKX received 7.5 million shares of UCAD for a 10% buy in. These UCAD shares are trading in the market place as of close Friday at $14.90 per share. The value of this Spin Off could be calculated to have a value of: 7,500,000 x $14.90 = $111,750,000
If the Spin Off ratio were correct (I don’t believe it was) then we could calculate an O/S for CMKX of near 779 billion. CMKX is trading at .0002 in the market place as of the close Friday. The market value of CMKX would be estimated to be:
779,000,000,000 x .0002 = $155,800,000 total market value for CMKX
This means we watched CMKX give out over 60% of its total market value through the UCAD dividend and the market value of CMKX did not drop an hundredth of a cent. If we are seeing a normal market flow then the CMKX market value ($155,800,000) would have been reduced by the $111,750,000 given away in the Spin Off. If the O/S of CMKX were 558,755,000,000 or less then CMKX would have given away over 100% of its market value. Something is definitely wrong on Wall Street.
With 10% of CMKX going to UCAD for $111,750,000 one would tend to believe that at the very least CMKX would have a “market value” of $1,117,500,000 dollars or .00143 + per share price.
Add to that the CIM Spin Off, the GEMM Spin Off, and the SGGM 200 billion restricted shares in the company’s possession, and 1.9 million acres of mineral rights per my conversation with Melvin two days ago, then we can easily see that CMKX is way undervalued in the market place based on the value and percentages from the Spin Off’s alone and the adjustment will come very soon in my opinion.
CMKX is under heavy market manipulation in my opinion and will begin to break loose in the near future as the CMKX plan continues to unfold.
These are just my opinions and I hope that you treat them as such.
Success is at hand.
Dr.D
CMKX Spin Off's
« Thread started on: Today at 5:04pm » <br>
--------------------------------------------------------------------------------
It is a pleasure to be able to share information with everyone on the board. This is just a thought I was kicking around this morning.
I would like to bring to light an observation and some information that others may have possibly overlooked. This has to do with CMKX value, shareholder value, and market values. I am no accountant by any stretch of the imagination so be gentle. If CMKX is dispensing all of the shares they are receiving from UCAD, GEMM, and CIM then the company is not increasing in value, but rather decreasing because they are giving up cash and percentages of the company and retaining little in return. In short, we as shareholders actually receive the increase of the value that the company has decreased in value.
Usually a dividend is paid out of revenue generated by the operation of the company and not a sell off of the company’s assets. Dividends typically come from revenue generated, but when it comes out of the company’s capital it is considered differently. If it is revenue being distributed then the company does not decrease in value but is actually sharing the profits generated. We are actually receiving Spin Off’s from CMKX which can easily be confirmed by your broker. A Spin Off by definition occurs by a corporate action through which the corporation divests an asset or assets by distributing part or all of the asset(s) to its shareholders. These assets are typically equity ownership in another entity such as the 7.5 million shares of UCAD that CMKX received in payment for 10 percent of the company. What would be expected with a Spin Off would be the same with other forms of similar corporate distributions and that being that the value of the shareholder’s original shares is reduced by the value of the asset received. The market value of the shareholder’s total investment, however, remains unchanged.
Typically a Spin Off will reduce the share value in the market place for the company releasing the assets to the shareholders, but the shareholders value remains the same due to the value of the assets received.
For example, in a typical Spin Off we will assume that there are 100,000 shares of URBAN Co. common stock outstanding and that each share has a market value of $100 per share. The total market value of URBAN Co. is $10,000,000.
100,000 O/S X $100 per share market value = $10,000,000 Total Market Value
On top of this let us assume that URBAN Co. owns 100,000 shares of MELVINS Resources, Inc., valued at $30 each. URBAN Co.’s equity investment in MELVINS Resources, Inc. is worth $3,000,000
100,000 shares X $30 per share market value = $3,000,000 Total Market Value
URBAN’s Co $10,000,000 market value includes the $3,000,000 TMV from MELVINS Resources Inc.
A Spin Off from URBAN’s Co., of its MELVIN’s Resources Inc. shares held to it’s shareholders would reduce the market value of Urban’s Co by $3,000,000. This would be seen in the market place as a reduction in the PPS of URBAN’s Co., from $100 per share to $70 per share because of the $30 per share valuation reduction by the spin off.
In CMKX’s case this is really being manipulated by the market makers. Currently we have a market valuation of .0002 per share of CMKX. CMKX received 7.5 million shares of UCAD for a 10% buy in. These UCAD shares are trading in the market place as of close Friday at $14.90 per share. The value of this Spin Off could be calculated to have a value of: 7,500,000 x $14.90 = $111,750,000
If the Spin Off ratio were correct (I don’t believe it was) then we could calculate an O/S for CMKX of near 779 billion. CMKX is trading at .0002 in the market place as of the close Friday. The market value of CMKX would be estimated to be:
779,000,000,000 x .0002 = $155,800,000 total market value for CMKX
This means we watched CMKX give out over 60% of its total market value through the UCAD dividend and the market value of CMKX did not drop an hundredth of a cent. If we are seeing a normal market flow then the CMKX market value ($155,800,000) would have been reduced by the $111,750,000 given away in the Spin Off. If the O/S of CMKX were 558,755,000,000 or less then CMKX would have given away over 100% of its market value. Something is definitely wrong on Wall Street.
With 10% of CMKX going to UCAD for $111,750,000 one would tend to believe that at the very least CMKX would have a “market value” of $1,117,500,000 dollars or .00143 + per share price.
Add to that the CIM Spin Off, the GEMM Spin Off, and the SGGM 200 billion restricted shares in the company’s possession, and 1.9 million acres of mineral rights per my conversation with Melvin two days ago, then we can easily see that CMKX is way undervalued in the market place based on the value and percentages from the Spin Off’s alone and the adjustment will come very soon in my opinion.
CMKX is under heavy market manipulation in my opinion and will begin to break loose in the near future as the CMKX plan continues to unfold.
These are just my opinions and I hope that you treat them as such.
Success is at hand.
Dr.D
