Post by portrush on Jul 30, 2015 21:33:40 GMT -6
CMKX/NHHI Webcast #45
Thursday July 30, 2015
[8pm 72 in attendance]
Opened in prayer.
Litigation Update:
On 7/15 received a CD with thousands of pages of records from WF. Still at beginning stages of analyzing to see what’s there. Spreading the info out among the research team to discover valuable pieces of intel. Monumental task. Small number of researchers between volunteers and Frizzell’s office.
Initial overview shows they're not as excited as they thought it might be—at least the attorney is not. 1250 bank statements on 86 bank accounts with more to come.
Patience and hard work is the only thing that will prevail since the company doesn’t have the personnel to tackle the magnitude of this task.
The criminal trial for the insiders is still scheduled for 9/15 this year. At this point he doesn’t see any moving of this trial. There is significance to this trial because the truth will come out…including info that illustrates this was a scam from the start.
There could be a massive move by the defendants to plea bargain before the trial and strike deals. The company has no control over that and they have to wait one day at a time to see what comes of that.
SK has been contacted by some wanting to be at the trial. He doesn’t know if they will allow a large group of people or not. He will try to find out. SK doesn’t have any contact requiring him to be there—but he does plan to try to go and be there as long as he can. He does feel a deal like this could last a month or two—he just doesn’t know. If they let shareholders, company management or our legal team in…then he may host some webinars during the trial event. These could be nightly or 2-3 times during the course of the trial.
He feels this is important because at least 50,000 people have been damaged by this event and it’s been both frustrating and heartbreaking. Given all the various ‘theories’ about what this company is (sting, scam, etc) it has become a frustrating road to hoe for everyone, himself included.
Getting through the criminal trial is a milestone in itself. He has no doubt there will be interesting things come out as well as some significant restitution orders placed against some people—whether they’re able to pay those are not.
Judge Cadish did deny the judgment debtors motion to overturn our large judgment. The court notified the wrong lawyers—but we now have proper notice that we have won the case. What we’re waiting for now is for the court and opposing counsel to sign off on our motions. Our lawyers create a fairly complex document per the judges’ orders …then there some back and forth and they have to sign off on that. Once he gets a final copy of the order he may post to website.
What happens from here? The judgment debtor could appeal this. ..feeling they got shafted by the court. However, in this type of deal according to his lawyers, its clear we prevailed with the facts on our side. There was some questionable deposition material and the judge therefore rules in our favor. From what he understands is for a large judgment for this…should they appeal they need to purchase a bond for the size of the judgment. So if they did appeal, and lose, the bond would pay the full amount immediately. From what he has read they don’t have a leg to stand on—but they could appeal just to stall payment. But they would have to come up with hundreds of thousands of dollars to appeal this. Ultimately he feels we will prevail.
A second option—once we have the document from the Judge, we have to take that document overseas and work to get the assets. We could wait another 4-5 months of court time overseas from getting any real firm recovery. If the company is granted the property, then they have to convert it to cash and bring the money back to the USA.
There is also a chance they could want to settle everything prior to us going over seas but none of that is under our control. SO it’s a wait and see scenario that looks promising but slow. This and the WF documents are the two major things they’re working on for recovery. We’re on the verge of some other cash coming in…its just a matter of weeks or months before we have the capital to start the oil business. He is looking forward to the day to buy some property or an oil business to jump-start us into a business.
[Speaking on the life lesson of learning to deal with the ability to exercise patience]
The Newsmax section added to the website is currently down. They’re working on getting it working.
Amazon is doing relatively well…cleared $87 this month and that helps the company. He gets to look at the list of what’s bought and he finds that there’s a good deal of money people are spending. It translates to 4-7% that goes towards offsetting the company expenses.
He has another line of some things that he can monetize the website with, but hopes they won’t be needed. He won’t be covering them tonight.
Let’s talk Oil and Gas…
He doesn’t monitor the boards or read anything that anyone is saying. He hears that some are saying don’t go to oil because prices are going down etc. He can’t pay attention to that. He has spent at least 18 months exploring O&G to take this company into. He has really had a tremendous education and has made some serious good connections. In the last three weeks he’s been in the fields looking at oil wells. It’s exciting to see the potential…in spite of the reduction of pricing. The lower prices have created a ton of opportunity. He is tracking several deals in the event we get some settlement money to jump on one of these purchases. Oil leases today are cheaper today than they were 6 months ago.
The buying opportunities are cheaper than the commiserate drop in price. There are more deals and they are cheaper because folks that bought the leases with high prices and now due to the decline in pricing, they don’t know what to do. So those are the wells that are available.
[8:30pm 61 in attendance]
People he knows are buying these leases because the leases are low. He is not looking to invest in fracking deals now, if ever because the break-even point is harder to do. We can buy old wells that aren’t producing much oil (cheap) clean them up, do some water-flow and get them back up to producing enough to make money at $20-25 a barrel.
Anyone that feels the company is misguided about this direction and they have no idea what they’re doing—go ahead and believe them if you want—he doesn’t care. More millionaires and billionaires are made in the O&G business than any other opportunity. He has friends that own a hundred gas stations with convenience stores and they don’t make enough money net-net to build a company valuable enough to give shareholders an ROI. We need 200+ million just to return money originally invested without interest. This is his way to start small and grow into something significant…regardless of what the naysayers say.
He doesn’t doubt if oil hovers in the 50’s for quite a while. He says if it drops to the 20’s all drilling worldwide will stop. People that have reserves will shut down their wells and won’t sell in the 20’s. This action will drive oil back up. It’s a strict supply/demand play. The Saudis are slowing down the USA Shale production to try to control pricing. US oil companies are pretty astute…as you see the price decline you’re seeing efficiencies in play that reduces costs.
Regardless of what people say or think—that’s the direction we’re heading in. If something else came along that would offer huge promise, he would look at it but doesn’t expect anything. He says remember—this is a SMALL business and we’re starting at ZERO…and will be a small business for some time. The oil thing he thinks will help us grow, is O&G. We will start small and grow it. He looked at one area that has about 1000 inoperable wells that produce a half barrel to a barrel a day—but if we can get them for peanuts it will add up.
He is waiting for the settlements to come in so we have some revenue to seriously buy something and get into business.
He’s looked at some technologies lately—an app that allows you to subscribe to it and you can design your own app. So once we get into the O&G business he wants to have an app that allows shareholders to tap the app and see the company’s progress in the O&G business, right down to cameras on the wells. It also helps with security on the wells and he thinks this would be a fun deal to have this on the web.
We’ve had nothing but bad news for so long we need something good to see. Something exciting.
Shareholder Questions:
1) Of the evidence on the disc, (WF) will that be submitted to the court? Will that be an excuse for them to extend the criminal trial because there is so much they need to review. Or is that just an in company possession.
Answer: Good question. If the DOJ has done their job completely, and he feels they have, they would have all we have and then some. The record we got through our subpoena were limited. The DOJ has been working on this for years. The company is not obligated to present anything to the court. That material was for us. If the DOJ doesn’t already have what we have—he would be shocked. They’ll have every bank record of the insiders. Our material stays with us only, unless the DOJ were to ask us for it…but he pretty much guarantees they have it already. Maybe the day will come after the trial the DOJ will let us plow their the documents for more.
2) When is the deadline for the appeal? What target price for the oil well that you would like to buy? Thanks to WF records, you have discovered some properties. Is that property or bank accounts. How many and what are they worth?
Answer: On the appeal…one the final document is signed by the Judge (we should have had it by now but we don’t)…its his understanding is that they have 30 days to appeal. He expects the doc from the Judge any day now. He’ll report if they appeal, and again once we clear the 30 days. The minute we get the doc, it will be transmitted to the foreign court immediately to start that process right away. He doesn’t know if they appeal if its slows down foreign court, but if they did and posted the bond—its $7 million, so he doesn’t think they will.
As to the properties…there is a lady out there that says she single handedly blew the deal with Can-Cal. There is all sorts of crazy stuff this person puts out there—crazy stuff. He won’t be divulging much of anything with a loose cannon like her out there. His says his attorneys are fired up about this and if it happens again, this individual will be sued civilly. If this persona or any other slanders the company again and damages it again…they will sue for every nickel they have and bankrupts them. They know who it is and where the person lives. At some point these idiots need to be stopped. So, rest assured he won’t be talking about anything the company is doing in a proprietary way if it means that someone can do damage to the company. There’s some crazy people out there and they need to be stopped—legally.
As to the price of oil…typically, in good times when oil is $100 a barrel, (he’s looked in TX, OK, LA, KS, Bakken, MT, NM, CO) …in TX if you have a field producing 100 barrels a day you would pay $7million. You have to verify that there are reserves enough to insure it will produce. He calls out those on the boards saying he has no idea what he’s doing w/o experience…he has news; he has friends…an entire team that are experts in the industry in all areas of production with far more experience than anyone on the boards.
He has one deal right now…that had a casing leak. Right now it’s producing nothing. Once fixed, he can buy that 236 barrel producing oil a day for $30K but would have to spend $100K to get its disposal well operational and once operational, for a max of $131,000 he can get a well producing 26 barrels a day. But until we have money to spend, we wait and reassess when we’re ready to buy. He knows of another deal with 88 wells on it. The people that own it just let it go to the dogs, after windstorms and such. They were doing 16 barrels a day and there were only 16 wells working at the time. If we could get 50-60 wells working, there’s enough to get an oil company working right there.
3) If everything goes good and we get back to trading what would our stock price be?
Answer: laughing… I have no clue how to answer a question like that. We have a long way to go, it’s been so slow, I hate to speculate on that. Let’s get a business started and see where we go. From the day that we get enough capital from the recovery, we should be in good place to get some wells and get going. Our net from the one deal will able about $800,000 and if he had that kind of money we would be able to get some wells and be profitable in about 90 days.
4) I am confused about how we could take care of our NSS, for the market to naturally do that when we go trading…I wondering how it is possible we have NSS at all since the DTC ordered brokers to get rid of CMKX in electronic form…also, brokers have gotten rid of most if not all shareholders had electronically by waving it away as worthless securities. How can we have our NSS be taken in the market?
Answer: what I have said before, I understand there was a time when Frizzell said we had naked shorts on a silver platter and it got everyone excited…here’s the point: It is impossible for us to determine if there is truly a naked short and to what extent, is if there is a massive lawsuit against about 50 brokers that we can’t afford and no law firm on the planet (including Wes Christian) to do this. There was this Trimbath letter done of a few brokerage statements against some bulk cert statements they had…and it appear these had shares not covered. And then the cert pull was inconclusive and it was never published.
This NSS thing is a big deal in peoples minds…but its not really a huge deal to those that got certs. It is a big deal to those that hold them electronically. He’s been telling people that contact him, if you have electronic…DEMAND a certificate and don’t stop until you get a certificate. There are many shareholders that have their shares in electronic form and the brokers have taken them off their records. That’s not really Kosher—don’t allow them to do that! Tell them that you’re not allowing that, its not authorized by you.
He doesn’t’ really know if we have a NSS or what its extent is. Maybe we do have some sort of NSS that’s not been dissolved by brokerages that haven’t provided certs to everyone. The only thing that we can do to address NSS is to take the shares back to the market and if there are uncovered shares out there….then we take it back to the market and let the chips where they fall where they may. Let the SEC do their job. We hope that we can somehow help the people with electronic shares get them covered if they’re not…but they don’t know if there covered or not. That’s the primary reason to go back to trading…to apply pressure to the SEC to force the brokers to cover them.
If you’re a certificated shareholder, you were really damaged by the insid4rs going to trial…not by the NSS. The NSS selling didn’t cause the demise of the company or the delisting of the stock. What caused that was the actions of the insiders. If you have a cert in your hand, you can’t make much of a case that you were damaged by NSS of the stock. If there are those with electronic shares, they may have a better means to do so.
5) Still, if the DTC made that order to all market participants and they did not listen, as to move all CMKX stock off their books and electronic forms into Cert form, then obviously somebody like the SEC should have acted. Do you remember that the DRC made that order? How come the DTC was not followed and who would be responsible to enforce it. SEC, DTC, its really weird. I am sure others remember that—the DTC order page visible.
Answer: I don’t know everything that the DTC has said or done. I just don’t know. I’ve heard all sorts of things and tried to call Morris Richards at the DTCC and he would never call me back. I don’t know what the DTCC has ordered…you may know more than I do. What is done is done and the fact is THIS company is never going to have the money or time to go backwards to make something out of that… its just impossible. I typically don’t address these kinds of things any more.
Let me simplify this from my perspective. I don’t know what the DTCC did or didn’t do…never could get them to talk to me. There is nothing I can do, there’s nothing you can do. If there’s a NSS out there of any kind of magnitude is to let the market forces take affect if we go back to trading. We don’t have that kind of fire power or money to pursue it. Wes Christian won’t touch it. Its unfortunate if it happened, but there is nothing that we can do if someone didn’t get their certificate. I don’t know what else to say on that issue…hope it helps you, but it may not. All I know to do is to build a new company out of the ashes of this mess and hopefully take it back to trading one day. We may go back to trading and nothing happens other than we’re back on the market. Maybe all we accomplish if a free market for your shares and you can get “something” for them. Maybe the business we build is such that the share price goes up and supply/demand is such that maybe we can get it to a dollar a share and you make a profit.
6) If we have CMKM shares in our treasury will you let them loose if we begin trading again so you gain a profit?
Answer: Good question and I’ve talked about this recently. This is speculation at this point—we’re a long way from trading again. And we need to look forward to trading as a real goal. We have 100 Billion shares in treasury. One of the primary reasons to go back to trading…if there is a NSS situation…is to see if the market forces are strong enough to cover FTDs and in the process the stock price goes up. It would be cheaper and easier for the company to remain private and not trade. But if we’re in a financial position and have the money to spend on legal work, accounting work and such to prepare to trade again…we will do it. That will allow the shareholders that want to sell—sell. If tens of thousand did on opening day, the price would drop dramatically.
What I’ve said before, if I’m still around at that time, we would hold the treasury shares for several months and let people who want to get out, get out. Let the price stabilize and if we have a need for capital, then put some shares out there for sale. That’s the reason we’re still here—to build something of value for the shareholders that have been severely damaged. No we wouldn’t be dumping shares in the market if we started trading again.
7) Back in the day, CMKX gave out a series a dividends (CIM, GEMM, UCA)…did the company distribute every one of those dividends to shareholders or does the company still hold any of those?
Answer: I don’t know everything there is to know about that subject. As far as I know—and we have a massive pile of records in storage that no one single person could go through them all…I’ve spoken with Kevin West and Bill Frizzell…as far as I know the company is certainly not holding any shares from these companies. CIM is defunct…he thinks GEMM is defunct. There may be something about UCA on the internet, but he has nothing that indicates that we have anything. From what he’s been told, those dividends were given out to select individuals to buy more shares. There was no value to CIM ever from his what he was told or his research. Only one of these three may be in existence.
[9:30 51 in attendance]
8) UCA has now morphed into a company with promise and a stock worth about 10 cents. Our shares were restricted shares, so I wondered if we can have the restricted legend lifted so we can recoup some money.
Answer: He doesn’t know anything about that. Hopes it is worth something for shareholders, but he has no idea or no record of that. He recommends you contact the company directly and find out what to do. Don’t depend on CMKX shareholders to tell you—call them direct. Ask for their IR guy.
9) You have said ..Quote “ cert shareholder are damaged by insiders.. NSS does not damage certs holders...“ ..Unquote.. my question is → IYO .. what do you advise the certs holders, when you trade ?
Answer: I am not certain I understand your question…we’re getting off in the weeds some. What I said was, basically was certificated shareholders were damaged by former insiders. The people who took your money for your shares—if you bought from the original group—they’re the ones that got your money. They didn’t’ build the company with it as they said, they spent it elsewhere. That’s why I said if you have a certificate your complaint is with the insiders—not anything to do with NSS. Where your money got burned is by the insiders. People that may have a real beef about naked selling would be those with electronic shares only…because the brokerage never gave them certs for their shares and then perhaps deleted your shares. What do I advise the cert holders when we trade? When we go back to trading we will need a transfer company to assist us. If we, by the grace of God actually can trade again one day…you’ll take your cert to your broker and say you want it placed in your account to trade/sell. If you have a broker you trust for other stocks…if we go back to trading and you want to sell/trade your shares—you’re going to have to go to your broker and put them back into your account. The other option is just sit on your cert.
[Long pause… 4 minutes of dead air]
10) Will you post a summary of the call?
Answer: It is difficult for him to keep track the conversation. He can post the PowerPoint outline.
Closing comments:
Let me give credit again to our law firms they have done incredible work. They’ve put some tremendous work in over the last several months. They’ve been doing it out of their pocket and their time and I can tell you they’ve put in a lot of late hours. Say a little prayer and thank the Lord we have a few people trying to help the shareholders.
I will love it when we’re just operating as a company moving forward and not worried about litigation to survive.
That’s it—thank you very much for your attendance and questions. If anything happens between now and the end of August for the next webinar, he will try to post to the company website.
Thursday July 30, 2015
[8pm 72 in attendance]
Opened in prayer.
Litigation Update:
On 7/15 received a CD with thousands of pages of records from WF. Still at beginning stages of analyzing to see what’s there. Spreading the info out among the research team to discover valuable pieces of intel. Monumental task. Small number of researchers between volunteers and Frizzell’s office.
Initial overview shows they're not as excited as they thought it might be—at least the attorney is not. 1250 bank statements on 86 bank accounts with more to come.
Patience and hard work is the only thing that will prevail since the company doesn’t have the personnel to tackle the magnitude of this task.
The criminal trial for the insiders is still scheduled for 9/15 this year. At this point he doesn’t see any moving of this trial. There is significance to this trial because the truth will come out…including info that illustrates this was a scam from the start.
There could be a massive move by the defendants to plea bargain before the trial and strike deals. The company has no control over that and they have to wait one day at a time to see what comes of that.
SK has been contacted by some wanting to be at the trial. He doesn’t know if they will allow a large group of people or not. He will try to find out. SK doesn’t have any contact requiring him to be there—but he does plan to try to go and be there as long as he can. He does feel a deal like this could last a month or two—he just doesn’t know. If they let shareholders, company management or our legal team in…then he may host some webinars during the trial event. These could be nightly or 2-3 times during the course of the trial.
He feels this is important because at least 50,000 people have been damaged by this event and it’s been both frustrating and heartbreaking. Given all the various ‘theories’ about what this company is (sting, scam, etc) it has become a frustrating road to hoe for everyone, himself included.
Getting through the criminal trial is a milestone in itself. He has no doubt there will be interesting things come out as well as some significant restitution orders placed against some people—whether they’re able to pay those are not.
Judge Cadish did deny the judgment debtors motion to overturn our large judgment. The court notified the wrong lawyers—but we now have proper notice that we have won the case. What we’re waiting for now is for the court and opposing counsel to sign off on our motions. Our lawyers create a fairly complex document per the judges’ orders …then there some back and forth and they have to sign off on that. Once he gets a final copy of the order he may post to website.
What happens from here? The judgment debtor could appeal this. ..feeling they got shafted by the court. However, in this type of deal according to his lawyers, its clear we prevailed with the facts on our side. There was some questionable deposition material and the judge therefore rules in our favor. From what he understands is for a large judgment for this…should they appeal they need to purchase a bond for the size of the judgment. So if they did appeal, and lose, the bond would pay the full amount immediately. From what he has read they don’t have a leg to stand on—but they could appeal just to stall payment. But they would have to come up with hundreds of thousands of dollars to appeal this. Ultimately he feels we will prevail.
A second option—once we have the document from the Judge, we have to take that document overseas and work to get the assets. We could wait another 4-5 months of court time overseas from getting any real firm recovery. If the company is granted the property, then they have to convert it to cash and bring the money back to the USA.
There is also a chance they could want to settle everything prior to us going over seas but none of that is under our control. SO it’s a wait and see scenario that looks promising but slow. This and the WF documents are the two major things they’re working on for recovery. We’re on the verge of some other cash coming in…its just a matter of weeks or months before we have the capital to start the oil business. He is looking forward to the day to buy some property or an oil business to jump-start us into a business.
[Speaking on the life lesson of learning to deal with the ability to exercise patience]
The Newsmax section added to the website is currently down. They’re working on getting it working.
Amazon is doing relatively well…cleared $87 this month and that helps the company. He gets to look at the list of what’s bought and he finds that there’s a good deal of money people are spending. It translates to 4-7% that goes towards offsetting the company expenses.
He has another line of some things that he can monetize the website with, but hopes they won’t be needed. He won’t be covering them tonight.
Let’s talk Oil and Gas…
He doesn’t monitor the boards or read anything that anyone is saying. He hears that some are saying don’t go to oil because prices are going down etc. He can’t pay attention to that. He has spent at least 18 months exploring O&G to take this company into. He has really had a tremendous education and has made some serious good connections. In the last three weeks he’s been in the fields looking at oil wells. It’s exciting to see the potential…in spite of the reduction of pricing. The lower prices have created a ton of opportunity. He is tracking several deals in the event we get some settlement money to jump on one of these purchases. Oil leases today are cheaper today than they were 6 months ago.
The buying opportunities are cheaper than the commiserate drop in price. There are more deals and they are cheaper because folks that bought the leases with high prices and now due to the decline in pricing, they don’t know what to do. So those are the wells that are available.
[8:30pm 61 in attendance]
People he knows are buying these leases because the leases are low. He is not looking to invest in fracking deals now, if ever because the break-even point is harder to do. We can buy old wells that aren’t producing much oil (cheap) clean them up, do some water-flow and get them back up to producing enough to make money at $20-25 a barrel.
Anyone that feels the company is misguided about this direction and they have no idea what they’re doing—go ahead and believe them if you want—he doesn’t care. More millionaires and billionaires are made in the O&G business than any other opportunity. He has friends that own a hundred gas stations with convenience stores and they don’t make enough money net-net to build a company valuable enough to give shareholders an ROI. We need 200+ million just to return money originally invested without interest. This is his way to start small and grow into something significant…regardless of what the naysayers say.
He doesn’t doubt if oil hovers in the 50’s for quite a while. He says if it drops to the 20’s all drilling worldwide will stop. People that have reserves will shut down their wells and won’t sell in the 20’s. This action will drive oil back up. It’s a strict supply/demand play. The Saudis are slowing down the USA Shale production to try to control pricing. US oil companies are pretty astute…as you see the price decline you’re seeing efficiencies in play that reduces costs.
Regardless of what people say or think—that’s the direction we’re heading in. If something else came along that would offer huge promise, he would look at it but doesn’t expect anything. He says remember—this is a SMALL business and we’re starting at ZERO…and will be a small business for some time. The oil thing he thinks will help us grow, is O&G. We will start small and grow it. He looked at one area that has about 1000 inoperable wells that produce a half barrel to a barrel a day—but if we can get them for peanuts it will add up.
He is waiting for the settlements to come in so we have some revenue to seriously buy something and get into business.
He’s looked at some technologies lately—an app that allows you to subscribe to it and you can design your own app. So once we get into the O&G business he wants to have an app that allows shareholders to tap the app and see the company’s progress in the O&G business, right down to cameras on the wells. It also helps with security on the wells and he thinks this would be a fun deal to have this on the web.
We’ve had nothing but bad news for so long we need something good to see. Something exciting.
Shareholder Questions:
1) Of the evidence on the disc, (WF) will that be submitted to the court? Will that be an excuse for them to extend the criminal trial because there is so much they need to review. Or is that just an in company possession.
Answer: Good question. If the DOJ has done their job completely, and he feels they have, they would have all we have and then some. The record we got through our subpoena were limited. The DOJ has been working on this for years. The company is not obligated to present anything to the court. That material was for us. If the DOJ doesn’t already have what we have—he would be shocked. They’ll have every bank record of the insiders. Our material stays with us only, unless the DOJ were to ask us for it…but he pretty much guarantees they have it already. Maybe the day will come after the trial the DOJ will let us plow their the documents for more.
2) When is the deadline for the appeal? What target price for the oil well that you would like to buy? Thanks to WF records, you have discovered some properties. Is that property or bank accounts. How many and what are they worth?
Answer: On the appeal…one the final document is signed by the Judge (we should have had it by now but we don’t)…its his understanding is that they have 30 days to appeal. He expects the doc from the Judge any day now. He’ll report if they appeal, and again once we clear the 30 days. The minute we get the doc, it will be transmitted to the foreign court immediately to start that process right away. He doesn’t know if they appeal if its slows down foreign court, but if they did and posted the bond—its $7 million, so he doesn’t think they will.
As to the properties…there is a lady out there that says she single handedly blew the deal with Can-Cal. There is all sorts of crazy stuff this person puts out there—crazy stuff. He won’t be divulging much of anything with a loose cannon like her out there. His says his attorneys are fired up about this and if it happens again, this individual will be sued civilly. If this persona or any other slanders the company again and damages it again…they will sue for every nickel they have and bankrupts them. They know who it is and where the person lives. At some point these idiots need to be stopped. So, rest assured he won’t be talking about anything the company is doing in a proprietary way if it means that someone can do damage to the company. There’s some crazy people out there and they need to be stopped—legally.
As to the price of oil…typically, in good times when oil is $100 a barrel, (he’s looked in TX, OK, LA, KS, Bakken, MT, NM, CO) …in TX if you have a field producing 100 barrels a day you would pay $7million. You have to verify that there are reserves enough to insure it will produce. He calls out those on the boards saying he has no idea what he’s doing w/o experience…he has news; he has friends…an entire team that are experts in the industry in all areas of production with far more experience than anyone on the boards.
He has one deal right now…that had a casing leak. Right now it’s producing nothing. Once fixed, he can buy that 236 barrel producing oil a day for $30K but would have to spend $100K to get its disposal well operational and once operational, for a max of $131,000 he can get a well producing 26 barrels a day. But until we have money to spend, we wait and reassess when we’re ready to buy. He knows of another deal with 88 wells on it. The people that own it just let it go to the dogs, after windstorms and such. They were doing 16 barrels a day and there were only 16 wells working at the time. If we could get 50-60 wells working, there’s enough to get an oil company working right there.
3) If everything goes good and we get back to trading what would our stock price be?
Answer: laughing… I have no clue how to answer a question like that. We have a long way to go, it’s been so slow, I hate to speculate on that. Let’s get a business started and see where we go. From the day that we get enough capital from the recovery, we should be in good place to get some wells and get going. Our net from the one deal will able about $800,000 and if he had that kind of money we would be able to get some wells and be profitable in about 90 days.
4) I am confused about how we could take care of our NSS, for the market to naturally do that when we go trading…I wondering how it is possible we have NSS at all since the DTC ordered brokers to get rid of CMKX in electronic form…also, brokers have gotten rid of most if not all shareholders had electronically by waving it away as worthless securities. How can we have our NSS be taken in the market?
Answer: what I have said before, I understand there was a time when Frizzell said we had naked shorts on a silver platter and it got everyone excited…here’s the point: It is impossible for us to determine if there is truly a naked short and to what extent, is if there is a massive lawsuit against about 50 brokers that we can’t afford and no law firm on the planet (including Wes Christian) to do this. There was this Trimbath letter done of a few brokerage statements against some bulk cert statements they had…and it appear these had shares not covered. And then the cert pull was inconclusive and it was never published.
This NSS thing is a big deal in peoples minds…but its not really a huge deal to those that got certs. It is a big deal to those that hold them electronically. He’s been telling people that contact him, if you have electronic…DEMAND a certificate and don’t stop until you get a certificate. There are many shareholders that have their shares in electronic form and the brokers have taken them off their records. That’s not really Kosher—don’t allow them to do that! Tell them that you’re not allowing that, its not authorized by you.
He doesn’t’ really know if we have a NSS or what its extent is. Maybe we do have some sort of NSS that’s not been dissolved by brokerages that haven’t provided certs to everyone. The only thing that we can do to address NSS is to take the shares back to the market and if there are uncovered shares out there….then we take it back to the market and let the chips where they fall where they may. Let the SEC do their job. We hope that we can somehow help the people with electronic shares get them covered if they’re not…but they don’t know if there covered or not. That’s the primary reason to go back to trading…to apply pressure to the SEC to force the brokers to cover them.
If you’re a certificated shareholder, you were really damaged by the insid4rs going to trial…not by the NSS. The NSS selling didn’t cause the demise of the company or the delisting of the stock. What caused that was the actions of the insiders. If you have a cert in your hand, you can’t make much of a case that you were damaged by NSS of the stock. If there are those with electronic shares, they may have a better means to do so.
5) Still, if the DTC made that order to all market participants and they did not listen, as to move all CMKX stock off their books and electronic forms into Cert form, then obviously somebody like the SEC should have acted. Do you remember that the DRC made that order? How come the DTC was not followed and who would be responsible to enforce it. SEC, DTC, its really weird. I am sure others remember that—the DTC order page visible.
Answer: I don’t know everything that the DTC has said or done. I just don’t know. I’ve heard all sorts of things and tried to call Morris Richards at the DTCC and he would never call me back. I don’t know what the DTCC has ordered…you may know more than I do. What is done is done and the fact is THIS company is never going to have the money or time to go backwards to make something out of that… its just impossible. I typically don’t address these kinds of things any more.
Let me simplify this from my perspective. I don’t know what the DTCC did or didn’t do…never could get them to talk to me. There is nothing I can do, there’s nothing you can do. If there’s a NSS out there of any kind of magnitude is to let the market forces take affect if we go back to trading. We don’t have that kind of fire power or money to pursue it. Wes Christian won’t touch it. Its unfortunate if it happened, but there is nothing that we can do if someone didn’t get their certificate. I don’t know what else to say on that issue…hope it helps you, but it may not. All I know to do is to build a new company out of the ashes of this mess and hopefully take it back to trading one day. We may go back to trading and nothing happens other than we’re back on the market. Maybe all we accomplish if a free market for your shares and you can get “something” for them. Maybe the business we build is such that the share price goes up and supply/demand is such that maybe we can get it to a dollar a share and you make a profit.
6) If we have CMKM shares in our treasury will you let them loose if we begin trading again so you gain a profit?
Answer: Good question and I’ve talked about this recently. This is speculation at this point—we’re a long way from trading again. And we need to look forward to trading as a real goal. We have 100 Billion shares in treasury. One of the primary reasons to go back to trading…if there is a NSS situation…is to see if the market forces are strong enough to cover FTDs and in the process the stock price goes up. It would be cheaper and easier for the company to remain private and not trade. But if we’re in a financial position and have the money to spend on legal work, accounting work and such to prepare to trade again…we will do it. That will allow the shareholders that want to sell—sell. If tens of thousand did on opening day, the price would drop dramatically.
What I’ve said before, if I’m still around at that time, we would hold the treasury shares for several months and let people who want to get out, get out. Let the price stabilize and if we have a need for capital, then put some shares out there for sale. That’s the reason we’re still here—to build something of value for the shareholders that have been severely damaged. No we wouldn’t be dumping shares in the market if we started trading again.
7) Back in the day, CMKX gave out a series a dividends (CIM, GEMM, UCA)…did the company distribute every one of those dividends to shareholders or does the company still hold any of those?
Answer: I don’t know everything there is to know about that subject. As far as I know—and we have a massive pile of records in storage that no one single person could go through them all…I’ve spoken with Kevin West and Bill Frizzell…as far as I know the company is certainly not holding any shares from these companies. CIM is defunct…he thinks GEMM is defunct. There may be something about UCA on the internet, but he has nothing that indicates that we have anything. From what he’s been told, those dividends were given out to select individuals to buy more shares. There was no value to CIM ever from his what he was told or his research. Only one of these three may be in existence.
[9:30 51 in attendance]
8) UCA has now morphed into a company with promise and a stock worth about 10 cents. Our shares were restricted shares, so I wondered if we can have the restricted legend lifted so we can recoup some money.
Answer: He doesn’t know anything about that. Hopes it is worth something for shareholders, but he has no idea or no record of that. He recommends you contact the company directly and find out what to do. Don’t depend on CMKX shareholders to tell you—call them direct. Ask for their IR guy.
9) You have said ..Quote “ cert shareholder are damaged by insiders.. NSS does not damage certs holders...“ ..Unquote.. my question is → IYO .. what do you advise the certs holders, when you trade ?
Answer: I am not certain I understand your question…we’re getting off in the weeds some. What I said was, basically was certificated shareholders were damaged by former insiders. The people who took your money for your shares—if you bought from the original group—they’re the ones that got your money. They didn’t’ build the company with it as they said, they spent it elsewhere. That’s why I said if you have a certificate your complaint is with the insiders—not anything to do with NSS. Where your money got burned is by the insiders. People that may have a real beef about naked selling would be those with electronic shares only…because the brokerage never gave them certs for their shares and then perhaps deleted your shares. What do I advise the cert holders when we trade? When we go back to trading we will need a transfer company to assist us. If we, by the grace of God actually can trade again one day…you’ll take your cert to your broker and say you want it placed in your account to trade/sell. If you have a broker you trust for other stocks…if we go back to trading and you want to sell/trade your shares—you’re going to have to go to your broker and put them back into your account. The other option is just sit on your cert.
[Long pause… 4 minutes of dead air]
10) Will you post a summary of the call?
Answer: It is difficult for him to keep track the conversation. He can post the PowerPoint outline.
Closing comments:
Let me give credit again to our law firms they have done incredible work. They’ve put some tremendous work in over the last several months. They’ve been doing it out of their pocket and their time and I can tell you they’ve put in a lot of late hours. Say a little prayer and thank the Lord we have a few people trying to help the shareholders.
I will love it when we’re just operating as a company moving forward and not worried about litigation to survive.
That’s it—thank you very much for your attendance and questions. If anything happens between now and the end of August for the next webinar, he will try to post to the company website.
