I am updating my staus.
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Hi Dan
Yeah, as long as it's just that I'm OK.
rato was saying something about not having an auditor (but I don't think he actually meant it) - am sure there would have been more fuss if there had.
TSTC does seem to have there strong Q4's and so far it's always got them out of a tight spot. If that's the reason for the share dive then I'm OK with that.
I've read a few posts back... thank you for the commentary - need to get back up to speed, thanks.
rich
Haven't been paying attention, was the stock dive just due to poor Q3 figures?
rich
Can you be suspended on one exchange and trade on another?
rich
They haven't been timely with information I suspect this isn't about to change.
rich
Yes, you've provided original research to the board; so thank you.
rich
I think your making too much of it. Bullmarket spoke in a certain manner which, he says, is a professional courtesy for lawyer types. His point was that others don't need to be so circumspect.
BM's right in respect that we don't want everyone phoning but, obviously, a couple of other known members phoning is a good thing for veracities sake. I don't think anyone would defend only one person contacting an important information source.
He even complimented you on your findings.
rich
Wasn't he one of the problems since he wasn't independent?
rich
Are hearings closed?
rich
Agreed. We don't want to have to believe in him at this point but it's the only game in town.
rich
yeah, and was doing better before it went dark. Lets hope they don't shut off the lights too quick on CCME.
rich
Not disagreeing. I'm definitely in acceptance
If management only worry is staying out of jail it's going to be at our cost. However, there's nothing I can do other than sit on hands.
rich
Oh well, not like we can do anything now... We'll know soon enough.
rich
Why was Rhino allowed to trade? Clearly, they admittedly lied about 2.5 of their 5 contracts - open and shut case for SEC. Surely, that's a major fraud? Why not stop that trading?
Instead it just traded along until it went dark.
rich
FUQI said that they intended to look at relisting, I think. A message encouraging him to do what he can in that direction ain't going to hurt the PPS.
rich
DGW muddy waters initiating...
I believe the appeal worked for NEP. This feels a different situation from NEP but it's not 0% chance but clearly the odds aren't good.
If management have the choice of ending CCME's credibility (no laughing please) or putting more into their plan then perhaps it might be enough to concentrate their minds and do more.
I wish NAS would release what their plan was! That would be interesting read indeed, even if it was a blank piece of paper.
rich
Why do you think they will be forced? I agree they should but NEP didn't have to. We learn't about what went on at a later date, weeks later.
rich
If it's like NEP then we won't know - according to this PR they put in their plan on April 29th and I don't see any information reflected in SEC doc or, not unusually for NEP, in a PR.
http://cneh.irpage.net/details.php?id=39326
These are NEP's SEC filings...
http://www.sec.gov/cgi-bin/browse-edgar?company=china+north+east&match=&CIK=&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany
rich
March 30th, 2011 Wuyi Pharma's Earnings and Special Dividend
For those looking, please download the Wuyi Pharma annual report here.
The Lin brothers need cash.
------------------------------------------------------
March 30th, 2011 Serious Allegations Against CCME
Looking at the latest 8-K released by CCME, we get details on the Deloitte reasons for its resignation.
From the 8-K:
Prior to its resignation, DTT raised the following issues encountered during the audit, including: issues related to the authenticity of bank statements; a loss of confidence in bank confirmation procedures carried out under circumstances which DTT believed to be suspicious; issues concerning the validity of certain advertising agents/customers and bus operators (including with respect to certain of the Company's top ten customers); concerns over possible undisclosed bank accounts and bank loans; information on file with the State Administration of Industry and Commerce as to certain subsidiaries appearing to be inconsistent with comparable financial information provided to DTT; the verification of the validity of a sampling of tax invoices issued in connection with certain large transactions; the verification of certain subsidiary tax payments with the local office of the State Administration of Taxation; the verification of salary payments made in cash directly to employee bank accounts; the verification of the production process for advertising programs; and the potential double counting of a certain number of buses.
The biggest thing that troubles me is the bank statement and confirmation procedures. I mean, the CFO, Jacky Lam, is a PWC auditor... how can he mess up the bank statements and confirmation procedure? What the hell is going on there?
If I were DTT and I was doing a SAS 99 audit, that would be the biggest red flag. Everything else is, "ok...we'll take some time to verify that..." But the bank statements gotta be simple, straightforward and clean.
Furthermore in the 8-K:
As a result, DTT had requested that the bank confirmation process be re-done at the banks' head office and that the issues described above be addressed by an independent forensic investigation. DTT stated in its resignation letter that, in its view, the Company was not in good faith willing to proceed with the course of action requested by DTT; however, the Company believes that it was working to address these items at the time of DTT's resignation. DTT discussed the subject matter of these reportable events and disagreements with the Company's Audit Committee.
The person in charge of the CCME audit committee is Marco Kung, another Wuyi Pharma/Lin Brother insider. What the hell was he doing? DTT alleges that CCME was not in good faith... Marco is in charge of that. He was suppose to grant DTT the right to speak to CCME's bank. Why didn't that happen? That's a simple phone call and signature.
So even though, we only have allegations here... allegations from the CFO, CV Starr, and DTT, but these allegations gives some insight into procedural and intentional screw-ups. They are serious and real red flags.
Until more facts come forth, I will maintain a wait n' see.
As for the new auditor... There will be no new auditor until a full forensics investigation is done. An investigation team will be hired. That is what the company will announce next and file a plan with the Nasdaq to remain listed and halted (90% certainty). Yes, I believe the halt will continue until the investigation is done. Judging by the precedence of ONP and RINO, we might see a resumption of trading by CCME in May or even June.
Dunno how the plans are presented. They might be just put on the desk of NASDAQ and the company and NAS come to an agreement (or disagreement). I'm not expecting a PR.
The definitive answer on "does the CEO want to remain listed" will be in the next week or so - I'd have guessed.
rich
I think my point was that you implied something rather than giving facts. Regardless, you've certainly made your point, twice now.
rich
To be honest, it's quite likely - assuming there's a business there then people have to have confidence that the old guard are gone.
rich
No, nothing to do for at least a month.
At the moment, no one has a clue. Get a forensic auditor in and get to know what we've got.
Then when accounts are available then the next steps can be made...
rich
yes, they got a clean bill of health.
It's to be seen with CCME.
rich
NEP still put it's NT-10Q out on time - even while halted. So, I would err on the side of CCME having to produce SEC docs.
http://www.sec.gov/Archives/edgar/data/787251/000121465910002194/0001214659-10-002194-index.htm
Now if anyone has some rules? Or if anyone knows otherwise?
rich
Have you got a list of those that you've checked? So other eyes can look over your hard work?
That sounds like something worth looking at, got nothing else on
rich
I seem to remember one or more shareholders contacting them.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59570697
I wrote to Shapiro expressing an interest in working with them.
I got a call back 10 minutes later from Kaitlyn Saner at Shapiro. They are gathering information and could have the suit ready to launch as early as Monday. I was surprised at this. She said things were looking "pretty good".
I will keep you posted on anything new.
I'm not worried about ignoring you - your optimism is more than canceled out by the general pessimism. I'm happy to remain neutral.
rich
OK, but not hired by CCME, they are quite independent and representing shareholders, and nothing to do with this halt.
rich
I missed that, which law firm did CCME hire?
rich
It's a joke how much there's been, obviously, I haven't laughed much since the halt but it's been one a day.
You don't see two in a day, least I can't remember, and I don't remember many days without one it's just a drip each day, 1 bash and 1 bash and 1 bash.
That series can't happen by chance. It's organised attempt to affect the stock.
Anyway, all wild speculation but it is clearly manipulation.
rich
I have no idea better than you. What I am saying is that I haven't see anyone try to manipulate a stock as much, ever. It's a continual battery. If you wanted to choose a cut and dried case, this would be it.
rich
If they aren't going to stop this for market manipulation then what? It's like every day something or other, even weekends.
If not this then what?
I don't see that they are going to be able to keep this secret though. Someone would know.
rich
NEP had T1 halt even though really H9
Goes to show, T1 can be used as a catch all until they sort something out. Also, down most of Tues and Wed before getting PR on Thurs.
Though, to be clear to those not familiar with the NEP halt - it was probably a missing 10-Q that caused SEC to call in the halt. The halt lasted months while a forensic audit was done, from May 25th to Sept 9th when it traded again.
I also remember phoning up the exchange and they wouldn't tell me anything, so had to wait for something from company - this is as we should expect.
May 25th (Tues) T1
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50564437
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50568686
May 26th (Wed) Still T1
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50630887
Shows T1 though in reality it's a H9 - halt due to SEC filing no up to date
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50611217
May 27th (Thur) PR mass resignation & forensic audit announced
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50658418
rich
OK, understood... eom
You say that, but I believe NEP option holders had to excise or not based on no news - that wasn't fun for anyone concerned.
rich
you need to have a certain % naked-short each day... If it were 7 day halt then they would clear out the RegShort
It can be a while.... even days - hope we'll know soon.
rich
That would be too easy eom
rich
Yes, psychology thing. Information coming from an unknown source, has more impact than from a known source - just one of those human foibles.
rich