(COMTEX) B: Zoomingstocks.com: CMKM Diamonds, Inc. (OTCBB: CMKX): Who is m
B: Zoomingstocks.com: CMKM Diamonds, Inc. (OTCBB: CMKX): Who is making Money on
Apr 06, 2005 (M2 PRESSWIRE via COMTEX) -- Sign up for the Zoom Generation
Newsletter (ZGN) at zoomingstocks.com! CMKM Diamonds,
Inc. (OTCBB: CMKX -- finance.yahoo.com
Carlsbad, CA some conscientious shareholders sent us emails asking some very
good questions that we felt should be addressed to the entire CMKX body of
shareholders. These questions are very apropos for todays CMKX investor. For the
complete story, including the emails visit Zoomingstocks.com.
Wheres the Beef?
One of the primary questions raised by one of our readers is "Who is making
money here?" Looking at the epistemology of CMKM Diamonds, we can derive some
answers based on past press releases to attempt to answer this questions and
many others.
Are the CMKX Owners making money and doing well?
That is doubtful. The CMKX Management is expending monies for drilling
operations, attorneys, the CMKXtreme Machine and other racing ventures. Based on
common knowledge and the things we know about CMKX there is no revenue stream
coming into the company. They have a high monthly burn-rate because of ongoing
activities and no money coming in that has been reported. They have yet to issue
any reports about the sale of property, diamonds or anything. Therefore, it is
difficult to believe that they are making any money.
Additionally, a company only makes money on their initial entry into the market.
This means an Initial Public Offering or a Reverse Merger into the market
through a shell, which is what CMKM Diamonds did a couple of years ago when they
bought the CMKI shell. Subsequent sale of stock is in the market and only market
makers and brokers make money from the transactions. Therefore, CMKX has not
made any money on the sale of stock in the market since on or about September
2002. Subsequent issuances of stock are usual for stock equity financing or
stock swapping.
The naked shorters, if they in fact exist, of course are making money as would
be any market makers involved in shorting CMKX. At this time other than events
reported in the past year concerning the OQuinn Task Force and other articles
concerning known market maker activity, we in fact know very little about who is
actually behind this egregious act. To acknowledge the severity of what is going
on with naked short selling, naked short selling in many opinions, is a term
that legitimizes an act of "thievery" perpetrated by institutions that have been
tasked with the care and feeding of our economy. The abuse on the "stock borrow
program" to naked short Pink Sheet and OTCBB stocks should be acknowledged as
being more serious that it is being made out to be.
A shareholder from Canada had this to say in response to our recent press
release:
"Just one comment - the words naked shorting means nothing to the general
public. I see the SEC and Donaldson using the word shorting in front of senators
to try to fool them. Let's start calling this what it is "Share counterfeiting."
Counterfeiting has a solid ring to it and the public needs to understand it is
wrong."
The readers comment puts things in perspective. It is illegal to counterfeit
U.S. currency but not illegal to counterfeit stock shares which is
representative of "investor money". Basically, it appears that they are walking
away with the money and leaving the investor holding a "bogus" piece of
electronic paper that says they own stock in a company when they really do not.
What is wrong with this picture! Counterfeiting is counterfeiting and stealing
is stealing. When is it going to end?
This begs the question, "What can the company do about the "share
counterfeiting" and how can they force a short squeeze?" What does it take to
force a "short squeeze" and can CMKX do anything about it with such a huge share
structure? There are many ways to accomplish a short squeeze and the opinions
vary from investor to investor. The problem we are experiencing is beyond
anything that any of us can conceive. The only way to correct this problem is on
a large scale. Our government, (The SEC), will actually have to step up to the
plate in support of investors to correct the problem. Regulation SHO has so much
promise, but has yet to be enforced to the point where anyone (institutions) has
had to pay the price for these crimes. It is time for the SEC to enforce
Regulation SHO and protect the individual investor and the companies that are
trying to live out their dreams of being successful public companies.
Where are the Divys?
Our first responder also alluded in the email about the U. S. Canadian Minerals,
(USCA), Juina Mining Company, (GEMM) and Casavant International Mining, (no
symbol), dividends that were received some months ago. Are they in fact "IOUs",
"placeholders", "frames", call it what you will, but did investors actually
receive a dividend? That question is still "up in the air" as are many of the
issues that we face today as CMKX investors. I am certain that CMKX shareholders
would love a response from the company on what in fact transpired with these
dividends and how do they fit in the overall strategy to increase shareholder
value. And what about the second GEMM dividend that was announced to
shareholders but was never received? That is a question for the U.S. Canadian
Minerals, Juina Mining Company folks to address. However, CMKM Diamonds should
be seeking those answers for their shareholders who have been kept waiting.
Mass Representation by an Attorney?
Our reader asked the question "Is the attorney hired by the investors to protect
them from the SEC a good idea? Should we be sending in our twenty five dollars?"
Of course, shareholders need to do what they are comfortable doing, especially
if it means that they have to pay money for it. Will the shareholders see any
value from the contribution to the cause? That remains to be seen because each
person will evaluate the process differently. Is it worth the money to be
represented and will it accomplish anything? The administrative hearing is for
CMKM management to present evidence to support their failure to provide periodic
filings in accordance with SEC regulations and resolve some other matters
dealing with governance issues. Is this the appropriate time for shareholders to
be stepping in and possibly complicating the hearing by requesting to be
represented? The only time that the shareholders interests will be considered is
during the deliberations where it will be determined if suspension or revocation
is in order. During the rest of the proceedings the shareholders will not have
any reason to be represented.
Shareholders at large are feeling powerless and feel that the SEC representing
them as a "protector" of the people is ineffective. If their aim is to protect
investors, then how will suspending the company s trading or revoking their
securities help or benefit the shareholder? It does not appear that there would
be benefit to the shareholder if this were to happen. The SEC does not seem to
have any control of the counterfeiting of shares. The fact that millions of
investors, and thousands of companies are getting "ripped off" is evidence of
the SEC s lack of control. Yet the SEC claims to be protecting the investor from
companies that they feel are not compliant with regulations put in place for the
protection of the individual investor. Kind of hard to get our arms around that
one, however, we need to let our justice system work and let CMKX management
have their "day in court" to present their case and continue making progress
towards correcting the problems of the past.
In answer to the question of paying $25.00, that is an individual decision each
investor will have to make and live with. Some investors feel that it is worth
investing the money while others feel that shareholders will only be assisting
the initial client defray his attorney fees by having other investors
contribute. In the end it remains an individual decision.
Stock Play of the Century?
Which century you say? Well we certainly hope that it is this century, this
year, and this month that investors receive "full disclosure" as a result of the
administrative hearing. Many CMKX shareholders will be attending the hearing and
will get the word out quickly as to the resolution of these issues.
"Yes, Virginia there is a Santa Clause". He lives in your heart; he thrives on
your faith and survives in the support that you are willing to give.
Shareholders are encouraged to establish a rapport and communicate with CMKM
Diamonds, Inc. Andrew "Andy" Hill, who is the "official" spokesperson for CMKM
Diamonds and has established himself as a credible and experienced expert in
communicating the companys progress to investors. Mr. Hills CMKM Diamonds
Hotline is 1-877-752-3755.
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promotion of CMKX. Full disclaimer/disclosure is located at:
www.zoomingstocks.com/main_disclaimer.htm.
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