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Shelf Stable Juice. I.e. Possibly Smart Fruit out of Brooklyn. JMHO
Does anyone have a copy of Joe Springer's original Seeking Alpha article to post here.
Newest Zacks report out with Outperform rating. Looks like a short term double for those who get in now.
No question. Volume going up, it is like a coiled spring. Looks like a great chance to make some good money quickly
This brings an all new meaning to having to pay the Piper.
Newest 8K out announcing the retention of DLA Piper to assist in its investigation of DTT's claims. No mention of Price Waterhouse as they have been hired by DLA Piper and are independent from CCME.
Till today I would say the biggest complaint we longs have had was the total silence and inactivity by Zheng and the company. If we were going to lose our money we wanted to at least know what fraud was perpetrated and not for the company to creep slowly into the dark. Well we got a strong nudge in the positive direction of what we were asking for. I honestly feel the tide has turned.
Andrew, you have been as cynical as anyone over the last month. Do you sell all your shares tomorrow if offered $8.00. Thanks to all those who responded already.
Tom, I totally get your cynicism, but let me ask you and all other longs one gut check question. After today's news knowing what you know(or thought you knew) of this company. If somebody offered you $8.00 a share(for ALL your shares,no hedging) would you take it. If not what is your flinch point that you would take it and not look back. I think the tipping point changed today and most of us are too jaded and battered to get optimistic. The company was headed to darkness from which Zheng would have taken the subsidieries out of the shell and slunk back to China with our monies. There is no rational reason for a guy who spends so little on a CFO to shell out the big bucks now when the exit sign is well lit. He seems to have chosen the other door to me. I think hypothecated cash has been released and no need to stall or conserve money anymore. I could be wrong, but it costs no more to be optimistic. Where would everyone here sell there shares after today news?
My personal feeling is everything we have and continue to see has been staged by Starr. The worst kept secret apparently was that DTT was made pretty nervous by the Deloittewatch.com accusations and was not going to be too reasonable on the signing off on the 10K. Shorts knew this and bet on them resigning as a sure thing to torpedo the share price. Starr knew this would happen. Got things in motion to get halted. They left the board. Launched a crazy lawsuit with the already refuted claims of the hit pieces. Company goes silent. People periodically resign from the board. Company stalls each step as long as possible to ensnare the maximum penalty to shorts when it reopens. After last set of options gets exercised company issues it's first statement since the long response after the chinese new year attack bringing aboard heavy hitters. Starr has the ability to then get back on the board with another member when they wish as long as they hold the shares. Board fills back up again with independent members(and hopefully but probably not high powered CEO and CFO). They meet Nasdaq requirements and get relisted when 10K comes out along with dividend and share buyback on reopening. Hedgefund and day traders pounce on the reopening. Occam's razor says this is the most plausible situation with the CURRENT set of circumstances. Today's release changes EVERYTHING!
If CCME is relatively legitimate. By that I mean profitable and pushing out close to the cash flow that they have represented, this becomes the obvious best scenario for the CEO. Most of the problems go away, and he then can get back his full control and look into listing on the far less strenuously regulated Hong Kong exchange. If this is the case it has been advantagous for the CEO to run the price down so he would then have to pay less in a tender offer. He also wouldn't need a CFO or a high level accounting group. I would certainly feel better thinking Starr is working with us rather than against us, as I know they would not accept as low a tender offer as I would be out of here. Wish I knew what was being discussed in the arbitration meetings in Hong Kong between the two sides.
More a case of as John Paul Jones said "We have not yet begun to fight." In truth they still have done NOTHING. I so hope that they will give a maximum effort to stay listed. Unfortunately this would involve Zheng looking after shareholders interest which he has not done in the last 2 months. I hate that I keep getting an infusion of hope just to get kicked in the groin time and time again. But hope I have again.
Question for lawyers amongst us. The fact that Starr used MW and Citron as their supporting evidence of F----, does that create a better case for a lawsuit by CCME against them. Trying to figure why Starr played up those obvious pieces of crap unless it would benefit someone. Any credence to this.
From post on YMB has a chinese transcript of CEO Zheng talking at the Forbes 2011 meeting in China yesterday. Nothing about CCME just about e-commerce in lower tier cities in China. Still I don't think if he was a major fraud he would show his face at a big Forbes event in China. Can any chinese speaking people here verify the translation given there for his comments. Appears like good news to me.
Posted on YMB is a link to a Bloomberg article saying Starr has started arbitration with CCME in Hong Kong. Any thoughts on this.
Pardon my ignorance, but how can I use a stop loss/ limit to help ease out of my position when the halting is lifted. What should I set them for to get the best chance of a decent exit? I am with Fidelity and they will let me place one. Any help would be appreciated.
Tom,
My question then becomes why does Dorothy Dong resign. My thoughts are that Zheng allowed the Lin brothers to use the company as collateral for a loan for their pharmaceutical business. In this case when it comes to light Starr has no choice but to ask Zheng to remove this and he should personally indemnify the loan. When he refuses to do this, a resignation would make sense. Any thoughts?
Lots of conspiracy thoughts, so I thought I'd throw one out for better minds than mine. Zheng and the Linn brothers had an agreement with Starr that if they didn't reach certain revenue growth rates they would personally be on the hook for a fairly large penalty based on the percentage of shortfall. If Zheng did enough to cook the books to make sure the gain was reached he would then have to be sure that Deloitte never went deep enough to uncover it. When Deloitte then asks for a forensic accounting he has no choice but to deny it. Deloitte quits. Starr obviously asks the same and gets denied. Zheng basically can go to pink sheets and never have a forensic accounting done or else take it private. Still a fraud, but of a lesser magnitude then others. Any thoughts?
Was looking through all my reports and information on CCME(2 file folder worth) tonight. I reread Starr's Put-option agreement which is triggered in the event that the specified audited consolidated net profits(ACNP) were not achieved and falls to the original shareholders(Zheng and the Lin Brothers). As a fraud clearly would trigger this, has anybody offered an explanation how the CEO could circumvent this crippling financial penalty. If it fell on the company it would be easier to explain, but as they would personally be liable I don't see how finding CCME to be a fraud would be anything but financial suicide. Has anyone addressed this yet?
Company might not speak to us, but will have to step up and speak to Naz. After 8K is filed, company will do anything it can to stay halted and not get delisted. Naz knows issues these CGS stocks have faced and probably will be more than fair if company is legitimate and forthcoming. Bad news would be Naz throwing company to the wolfs by ending the halt, deal knell would be delisting to the pinks. Avoidance of both is a win.
Certainly the best case scenario. No question we were playing against a stacked deck. Certain Hedgies knew early on this audit was going to be delayed at the least. Whispers spread and a piling on of shorts occurs. At the end still really knowing nothing further certain people write blogs on their take so as to look prescient when the hammer comes down. I don't think these bloggers got lucky, they knew a delay was coming down the pike, they hopefully are wrong about the reason for it. Leak either at company or Deloitte created this and thus we are in limbo now in this halt. When the 8K gets filed hopefully some positive clarity will come from it. GLTA.
I don't know about you, but I am relying more on Buddha in this case What Would Buddha Do?
This situation brings to mind one of the old original Superman episodes. He was forced to stand aside for some reason as I recall while a crime was being committed. He shut himself off in a room at the Daily Planet and set up a tape recorder that would say "No comment until the time limit is up" whenever someone asked him anything. The crooks thought he was in the room while at the same time he was free to go out and do whatever was necessary. I see CCME management doing much the same. They aren't saying anything but truly feel that behind the scenes they are calculating and working.
One thing is for sure we will have a story to tell. Just don't know if we'll be telling it from the penthouse or the outhouse. I could be naive but I am still confident it is good. Deloitte checked them out thorougly when Starr came in. The business is a simple one and really hasn't changed other then in economies of scale. Ownership would owe Starr big time if anything major comes from this. No stock I own has had more scrutiny than this one as the hood has been opened and the tires kicked(as well as us longs) ad nauseum. Simplest answer is management is looking to increase maximum value to shareholders and maximum pain to attacking shorts. I think we'll get a signal at least at close of market and really expect to be pleased.
Cowards Never Live in Castles
Definitely gut check time. All we can do now is reflect on our thoughts about our investment and the company. Lets you now if you are an optomist or pessimist. Also temper this to what the people in Japan are going through now. Still confident.
Cowards Never Live in Castles
The pressure certainly seems to be getting to some of us here. The purpose of this board isn't to do your due diligence, it is here to challange your thought process by either supporting your investment thesis or open your mind to things you didn't think about. Nobody here misguides me, as there job isn't to guide me. I suspect the strain and inticipation are bringing out the worst in some of us instead of a positive focus which would be healthy. Many things are out of our control, accept that. People give you information that is useful or not, accept that too. Due diligence isn't a one and done, needs to be gone over all the time, take the responsibility and do it. I stay out of Yahoo message boards as they are way too negative, this was a very positive place for a long time. Lets get back to that.
Cowards Never Live in Castles.
A couple of weeks ago we would have loved to have a stable few days like we have had as we inch towards the final showdown. Basically both sides are all in. I have no problem waiting. I would love to nail the shorts and a delayed 10K would probably not allow for that. Beyond that, as I have no options it's just a matter of time for a truer evaluation to come to CCME and for the market to show me the money.
Cowards Never Live in Castles
Once Deloitte signs off I would be shocked if we didn't see an increased institutional presence. Everyone is aware of CCME and the issues holding the price down. Backing out the cash, anyone who thinks it would be acceptable to sell the company with it's current growth rate and auditor backing for 6x earnings with cash backed out is crazy. Minimum of 10-15x plus cash and probably get the attention of management. I can see them just taking a stake as an investment and watching what developes over time. Would not use institutional ownership as my guide for anything like this occuring. Expect their support as there is big money to be made in this great small floated heavily shorted company once Deloitte signs off.
To quote Donald Sutherland in Kelly's Heroes-"No negative waves". I really try to stay focused on the positives that drew me to CCME in the first place anyway.
COWARDS NEVER LIVE IN CASTLES. LONG AND STRONG.
15 means nothing to me. I'm thinking 60+ for this stock. I averaged all the way down and threw about 70% of my SEP into this when it tanked. I am positive now but didn't do this just to make a few bucks. There is big money to be made here, and we'll get a much bigger jolt if comment comes with actual positive developments in hand. Great quarter ended, expect great guidance. Clarity on buy back and dividend combined with the Deloitte seal of approval is worth a little anxiety if you get that and wait a little longer.
COWARDS NEVER LIVE IN CASTLES!
The old rope-a-dope. What Ali used to beat Foreman. Let the opposition punch itself out and leave it without any resources to withstand your counter later on. I have not seen a reason for comment. I researched the stock, I own it. Barring obvious fraud proof I'm not selling so there is nothing they need to do for me. Certainly get enough reassurance from all the really sharp investors here on iHub that nothing more was needed for me. Remember Cowards never live in Castles and stay long and strong.
Being long CCME is quite the litmus test for your level of self confidence and strength of conviction. We are another day closer to the 10K and the enemy is now resorting to hail mary attacks.
This scene is like the student court scene in Animal House where they are having their charter revoked and getting thrown off campus. Tim Matheson smugly stands up and self-rightously tells the student counsel that they may push them around but it is unamerican and an indictment on the system to do so and they will not stand for it and they all get up and leave whistling a patriotic song. This is the shorts exit scene, they spout a bunch of nonsense and prepare to make their exit. Unless you actually believe any of this crap you have to know the light at the end of this dark tunnel is probably near. Reign in your fear and keep the faith.
I know little of options and only own stock. It should be obvious to all that when the 10K hits there is no way this stock will be trading within 20% of its current value. If signed off on it will go quickly back to the 24 area it was at, and playing a devils advocate and saying Deloitte walks away it drops into single digits. What is the correct way to play this with options? Now assume I am massively short, what is the best way to play this as that will be the exit strategy for them? If anyone can explain in simple terms I would greatly appreciate it.
After reading about such a high short count, what reason would the company have to not preannounce they will be meeting or exceeding estimates. Right now all us longs are looking over our shoulder waiting for the next tsunami of BS to hit us. It seems management should want to even the playing field with a preemptive strike announcement. Any thoughts?
Having followed this company for a while we all know they are mere weeks away from a blow out earnings announcement. They will undoubtedly easily beat all estimates. They will announce an approximately 11 cent dividend. They will hopefully announce new contracts and updated business plans. Is this enough to get Morgan Stanley to initiate coverage. Without this, we can probably garner a P/E of 10 and move to the mid 30's within the year. To truly unlock the value of this company we need them or another big house to vouch for us. Any thoughts?
Rumor has it that Muddy Waters is planning an expose now that Global Hunter Ping Luo is Jacky's sister.
WEEEEEEEEEEEEEEEEEE
I will be incredibly happy when this stock trades on fundamentals alone. Right now it exists to be manipulated in the short term for quick monetary gains. I hate to hear the angst so many people are feeling with the attacks to the company and it's stock price. I have almost 13,000 shares with no stop loss. I have ammunition to buy another 3,000. No reason to pull the trigger on those yet as I figure a major drive from shorts still to come which will drive it down below 12. I appreciate all the DD done by so many of you as it makes it easier for me to relax and think longer term and let time iron out all these wrinkles we are experiencing. Be of strong heart, nothing has changed here.
With the dividend probably being all of about 11 cents per share it will hardly be a deterrant. Doesn't hurt and along with the buy back we will be in a little better shape. Will not shake free from these short attacks until we get coverage by a big time firm. Need big brothers protection.
Definitely not The Three Stooges, who though slapstick still make sense. More like the 3 Blind Men and the elephant, with CCME as the elephant. They each analyze a part totally wrong.
Volume low with a steady rise in stock price since mid morning. Got the feeling we are in the eye of the tornado. Very calm but watch out. Shorts not covering. Would love to see Global Hunter come forward and get the shorts to flinch.