Post by swather on Apr 30, 2006 3:40:46 GMT -4
Frankie, are you out there? Give me a shout..
Frankie, world calling Frankie...
Swather, you again....what do you want this time?
Tell Tony to call me asap, will you..
Tony is a hard one to get a hold of....he's following that SEC lawyer chic around, you know the one....she gave you CMKX types a rough time at last July's court hearing....well, apparently she leaves a lot of left over lunches, a regular buffet for Tony.
Ya, ya,....just have him call..
ok, ok
To-day, Tony finally called..
Tony, I'm getting a lot of calls in the last few days. What's going on?
Well, swather. As I told you before, this whole thing is a good old fashion sting operation set up by Bob Maheu in order to trap the naked shorts. He was called in by the DoJ to do something about the drainage of $trillions of dollars from the US financial Markets.
Now, as I explained in my last report to you, UC and CMKX were to be the vehicle through which the sting would be preformed. UC and Maheu worked out a deal which would make UC and friends very wealthy with little cost to UC.
Ok, Ok, Tony. I know all that. You explained it in you last report. The confusing part is all the shares and what is to happen. If there is a naked short, what happens next? How can it be proved to keep the SEC happy?
Swather, ok, you want to know about all those shares.
Well, first of all, CMKX doesn't have to prove anything to anybody, not the SEC and not the DTCC......no-one...nobody..
You got that Swather?
But I thought that was what the cert pull was really about, Entourage and prove the naked short.
Surprise, surprise....the cert pull was to keep angry and restless shareholders occupied while negotiations went on. You must have heard the word on PalTalk and RB about some people trying to start a class action lawsuit and many others just upset that there was no news. Maheu has his hands tied. He could not let the word come out that he and the DoJ were in negotiation for a naked short settlement running into the "big bucks" category. The potential damage to the financial markets could be huge as well as the lawsuits issued. This had to be treated with kids gloves....very gently.
So, to divert attention away from the restless, Maheu had to create a diversionary tatic....pull the certs
Well Tony, what about all those shares and the share count? Are we naked shorted or what? and, if so, by how much?
Well swather, you have level 2 trading platform with "time of sales"?
Yes.
Did you watch and of your buy orders go through?
Yes, always..
Did you ever see the full amount go through?
Mostly but not all the time. When I placed a ten million share buy order, often only four or five million shares would go through on the "time of sales".
Correct swather. There is a hugh "off board" market for CMKX shares and not all shares would be shown. Sometimes, the "off board" market would be greater that the official market with billions traded daily. These "off board" trades could be such things as an "in house" trade where the broker just fills the order from his so called inventory long or an "in house" naked short or it can be an "off board" trade between two MMs.
So swather, these off board trades is where the real action was located and where the naked shorter really got caught.
The naked shorters were watching all the buying on the regular market and sold heavily into in. But, there were also firm bids in the off board market.
From who? From Urban. Urban was being financed by Bob Maheu who was being financed by the DoJ. Urban had all the money he needed from the DoJ to buy as much stock as he could find without tipping the market. Don't forget, Urban really didn't have that much money available to him and everyone knew it including the bad guys UC met along the way. That's why Urban was so perfect for the sting.
So, when the pump began in mid 2003, Urban entered the market and quietly began buying shares, both on board and off board. When the pump went big time in 2004 and Roger Glenn came on board, the trading was unbelievable. Urban bought and bought, particularly during the run up in June/04. The naked shorting was particularly strong during the following price fall.
So swather, during the three years of the sting operation, Urban and Bob Maheu were able to buy "trillions" of naked shorted shares with the funds advanced by the DoJ. How many? I don't know. They could have bought 3 trillion, 5 trillion 10 trillion, I just don't know.
So, Tony, what is going to happen to all these naked shorted shares? Is UC going to issue legal shares to legitimize the naked shorted shares?
Well swather, this is where the squeeze gets to be a lot of fun. Don't forget, this is really a DoJ operation. Do you remember what happened in late 1979 when terrorists in Iran seized a large group of Americans and refused to release them. What happened to Iran as punishment?
Iron had it's American assets seized by the American Government or really the DoJ.
That's right swather.
All naked shorters, regardless of who they are, whether off-shore or American, are under threat of having all their US holdings seized by the DoJ. They are forced to the table to negotiate, whether they came peacefully or had to be dragged in. These negotiations have not been easy with the large number of companies and their teams of lawyers involved.
Tony, and what will happen to all those naked shorted shares that Urban bought?
swather, once the deal with the naked shorters is finished and funds handed over, the naked shorted trades with UC with simply be canceled as if they did not exist.
Well Tony, why doesn't the DoJ just keep the money? You know how gov'ts are....any chance they could make money from the public, they will jump at the chance.
Correct swather, but in this case, Maheu and to a lesser extent Urban, made a deal with the DoJ that the shareholders would get the money. Since CMKX was going to be a diamond company in the first place, Maheu and UC made sure that the DoJ wasn't then going to turn around and screw the CMKX shareholders.
So swather, do you understand why Maheu has not been able to say anything? With so many lawyers and so many naked shorters involved, Maheu could not let a single word slip out as far as how negotiations are going.
And that is why the cert pull is such a beautiful cover. With the daily count, people's attention was diverted to the cert count away from Maheu. Potentially damaging class action law suits were placed on hold until the cert pull was over. The cert pull cover was so important to the final negotiations.
Tony, then what about CMKX? What will happen to it?
Swather, the company is just a shell now. Once the Entourage shares are passed out to shareholders, there is nothing left in it. What UC does with it is a good question now. Whether it becomes a holding company for a large position in CIM is a good question right now. We will have to wait until everything else settles first.
As for the bad guys, it appears they got a get out of jail free card by turning in their certs. I also believe that Urban received big bucks for not receiving any benefit of any settlement that may have been made by Bob Maheu against the naked shorters. This could leave the o/s smaller then expected.
As far as any settlement figure, that is hard to determine. If there is as much as 10 trillion shares naked shorted and the settlement calls for 0.05/share penalty, that would be $500 billion spread among 500 billion shares for example equals $1.00/share to shareholders.
Any other combination is also quite possible because nothing is known for sure.
The big play will be CIM. Urban, once he saw the naked short playing on CMKX, he diverted all the good holdings to CIM to be safe. He will IPO CIM away from naked shorters where he can build a good company free from all the bad guys. And UC will make it very profitable for CMKX shareholders to come with him into CIM.
So, swather, that's basically it. We now are just waiting for Maheu to finish all this. If you look at everything that has happened during the past 3 years and think of it in terms of this sting that Maheu has pulled off, everything will become much cleared to you. Why certain things happened. Why events happened such as the failure to pay for certain projects such as the American Mine project. They were all just necessary parts to the total plan, a sting operation carried out by the master himself.
swather....good night. I've got to get back to my lawyer chic.
Thanks Tony....
Of course this story is all just my humble opinion as to what may have happened based on the events of the past three years with CMKX. I hope you enjoyed reading it as much as I enjoyed speculating on CMKX
Frankie, world calling Frankie...
Swather, you again....what do you want this time?
Tell Tony to call me asap, will you..
Tony is a hard one to get a hold of....he's following that SEC lawyer chic around, you know the one....she gave you CMKX types a rough time at last July's court hearing....well, apparently she leaves a lot of left over lunches, a regular buffet for Tony.
Ya, ya,....just have him call..
ok, ok
To-day, Tony finally called..
Tony, I'm getting a lot of calls in the last few days. What's going on?
Well, swather. As I told you before, this whole thing is a good old fashion sting operation set up by Bob Maheu in order to trap the naked shorts. He was called in by the DoJ to do something about the drainage of $trillions of dollars from the US financial Markets.
Now, as I explained in my last report to you, UC and CMKX were to be the vehicle through which the sting would be preformed. UC and Maheu worked out a deal which would make UC and friends very wealthy with little cost to UC.
Ok, Ok, Tony. I know all that. You explained it in you last report. The confusing part is all the shares and what is to happen. If there is a naked short, what happens next? How can it be proved to keep the SEC happy?
Swather, ok, you want to know about all those shares.
Well, first of all, CMKX doesn't have to prove anything to anybody, not the SEC and not the DTCC......no-one...nobody..
You got that Swather?
But I thought that was what the cert pull was really about, Entourage and prove the naked short.
Surprise, surprise....the cert pull was to keep angry and restless shareholders occupied while negotiations went on. You must have heard the word on PalTalk and RB about some people trying to start a class action lawsuit and many others just upset that there was no news. Maheu has his hands tied. He could not let the word come out that he and the DoJ were in negotiation for a naked short settlement running into the "big bucks" category. The potential damage to the financial markets could be huge as well as the lawsuits issued. This had to be treated with kids gloves....very gently.
So, to divert attention away from the restless, Maheu had to create a diversionary tatic....pull the certs
Well Tony, what about all those shares and the share count? Are we naked shorted or what? and, if so, by how much?
Well swather, you have level 2 trading platform with "time of sales"?
Yes.
Did you watch and of your buy orders go through?
Yes, always..
Did you ever see the full amount go through?
Mostly but not all the time. When I placed a ten million share buy order, often only four or five million shares would go through on the "time of sales".
Correct swather. There is a hugh "off board" market for CMKX shares and not all shares would be shown. Sometimes, the "off board" market would be greater that the official market with billions traded daily. These "off board" trades could be such things as an "in house" trade where the broker just fills the order from his so called inventory long or an "in house" naked short or it can be an "off board" trade between two MMs.
So swather, these off board trades is where the real action was located and where the naked shorter really got caught.
The naked shorters were watching all the buying on the regular market and sold heavily into in. But, there were also firm bids in the off board market.
From who? From Urban. Urban was being financed by Bob Maheu who was being financed by the DoJ. Urban had all the money he needed from the DoJ to buy as much stock as he could find without tipping the market. Don't forget, Urban really didn't have that much money available to him and everyone knew it including the bad guys UC met along the way. That's why Urban was so perfect for the sting.
So, when the pump began in mid 2003, Urban entered the market and quietly began buying shares, both on board and off board. When the pump went big time in 2004 and Roger Glenn came on board, the trading was unbelievable. Urban bought and bought, particularly during the run up in June/04. The naked shorting was particularly strong during the following price fall.
So swather, during the three years of the sting operation, Urban and Bob Maheu were able to buy "trillions" of naked shorted shares with the funds advanced by the DoJ. How many? I don't know. They could have bought 3 trillion, 5 trillion 10 trillion, I just don't know.
So, Tony, what is going to happen to all these naked shorted shares? Is UC going to issue legal shares to legitimize the naked shorted shares?
Well swather, this is where the squeeze gets to be a lot of fun. Don't forget, this is really a DoJ operation. Do you remember what happened in late 1979 when terrorists in Iran seized a large group of Americans and refused to release them. What happened to Iran as punishment?
Iron had it's American assets seized by the American Government or really the DoJ.
That's right swather.
All naked shorters, regardless of who they are, whether off-shore or American, are under threat of having all their US holdings seized by the DoJ. They are forced to the table to negotiate, whether they came peacefully or had to be dragged in. These negotiations have not been easy with the large number of companies and their teams of lawyers involved.
Tony, and what will happen to all those naked shorted shares that Urban bought?
swather, once the deal with the naked shorters is finished and funds handed over, the naked shorted trades with UC with simply be canceled as if they did not exist.
Well Tony, why doesn't the DoJ just keep the money? You know how gov'ts are....any chance they could make money from the public, they will jump at the chance.
Correct swather, but in this case, Maheu and to a lesser extent Urban, made a deal with the DoJ that the shareholders would get the money. Since CMKX was going to be a diamond company in the first place, Maheu and UC made sure that the DoJ wasn't then going to turn around and screw the CMKX shareholders.
So swather, do you understand why Maheu has not been able to say anything? With so many lawyers and so many naked shorters involved, Maheu could not let a single word slip out as far as how negotiations are going.
And that is why the cert pull is such a beautiful cover. With the daily count, people's attention was diverted to the cert count away from Maheu. Potentially damaging class action law suits were placed on hold until the cert pull was over. The cert pull cover was so important to the final negotiations.
Tony, then what about CMKX? What will happen to it?
Swather, the company is just a shell now. Once the Entourage shares are passed out to shareholders, there is nothing left in it. What UC does with it is a good question now. Whether it becomes a holding company for a large position in CIM is a good question right now. We will have to wait until everything else settles first.
As for the bad guys, it appears they got a get out of jail free card by turning in their certs. I also believe that Urban received big bucks for not receiving any benefit of any settlement that may have been made by Bob Maheu against the naked shorters. This could leave the o/s smaller then expected.
As far as any settlement figure, that is hard to determine. If there is as much as 10 trillion shares naked shorted and the settlement calls for 0.05/share penalty, that would be $500 billion spread among 500 billion shares for example equals $1.00/share to shareholders.
Any other combination is also quite possible because nothing is known for sure.
The big play will be CIM. Urban, once he saw the naked short playing on CMKX, he diverted all the good holdings to CIM to be safe. He will IPO CIM away from naked shorters where he can build a good company free from all the bad guys. And UC will make it very profitable for CMKX shareholders to come with him into CIM.
So, swather, that's basically it. We now are just waiting for Maheu to finish all this. If you look at everything that has happened during the past 3 years and think of it in terms of this sting that Maheu has pulled off, everything will become much cleared to you. Why certain things happened. Why events happened such as the failure to pay for certain projects such as the American Mine project. They were all just necessary parts to the total plan, a sting operation carried out by the master himself.
swather....good night. I've got to get back to my lawyer chic.
Thanks Tony....
Of course this story is all just my humble opinion as to what may have happened based on the events of the past three years with CMKX. I hope you enjoyed reading it as much as I enjoyed speculating on CMKX