is...hopefully making money
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Putsbootycall - I haven't called Lena yet, but I need to. Do you have her number handy?
Atco - exactly. Jacky and management are showing their immaturity and fundamental lack of understanding of the dynamics of capital markets. I would love to hear their sales pitch to institutional investors -
"Check out our great advertising pipeline implemented on thousands of airport and inter-city busses. We've also got piles of cash. What are we going to do with all that cash? We're not sure. You should buy our stock though. Please ignore that fact that 50% of the float is shorted and we just hit fresh YTD lows despite great YTD numbers. But hey, if you buy it may start going up - we hope!"
I just sent an email to Jacky and IR expressing a growing concern about the company's lack of action against this short attack.
Bottom falling out on high volume. This is pathetic.
While it is important to speak about the facts, we all know the story of CCME. Great fundamentals, piles of cash, great growth story, exclusive contracts, etc., however you can talk about these things until you are blue in the face. At the end of the day we are dealing with human nature and with people, and with people perception becomes reality. Shorts are controlling the perception battle and that is why the PPS continues its way to new lows.
I keep seeing posts to the tune of "Management is doing a great job and they shouldn't have to worry about proving they are real." It is like people don't know that we are in the middle of a battle and are getting our asses handed to us. I will say that if management adopts that same philosophy we will surely see $6 or lower. I'm hopeful that they are working behind the scenes on something, but patience is wearing thin.
You don't follow the board very closely do you? Most here are averaged in around $9-11. Hardly a 50% loss. Anyway, today was frustrating. What a terrible close down to LOD.
These conversations are a direct result of the lack of action by management. People will fill the void with nonsense all day long so long as they are sitting on all this cash and doing nothing with it. At this point, people are thinking their cash position is BS because they have done nothing with it. I can't think of another company that I have ever followed that spent such a small % of their cashflow in an expanding market.
They have been executing on these piddley contracts of a few hundred busses here and there, but are yet to make a significant move with their money. If there are not any good acquisition opportunities out there that is fine, I don't want to see them make a rash and unsound move just for the sake of expanding, however they should come out and say that they don't see any anything good at this time and put that cash to use in some other way. Buying back some shares will provide a good return on their investment. A dividend would provide a good return for all shareholders, of which they are the largest.
Any of these options would be better than sitting on cash that is earning next to nothing while the shorts destroy all of our holdings.
What? You expect them to earn more than .00084% on their cash? LOL definitely a huge red flag. Shorts can claim that they are either lying about their cash balance or they have no idea what they are doing when it comes to cash management. Their interest earned should be at least $1 Million with the cash balance they have, and that is if they are in an ulta low yield account.
http://www.dailyfinance.com/company/china-mediaexpress-holdings-inc/ccme/nas/institutional-ownership
Dailyfinance.com has CCME institutional ownership at 14.73%, with Kimball & Winthrop, Inc. as the largest position holding 2.5 million shares.
Acquisition prices are typically a multiple of net income, so repressing the share price should not have a material effect on the final price, so I would say that is not a very likely scenario.
I think what it all boils down to is CCME is still relatively unknown (especially by institutions), has a small float and is a China reverse-merger which makes them a perfect target right now for short attacks. IMO, the shorts are driving the price down, covering, rinsing and repeating as they accumulate large positions. If that is the case then there is apparently no end to their greed, because the mid $8's wasn't enough for them. They seem compelled to take it down to the $6 range, which I believe can only be accomplished with a massive smear campaign.
Also IMO - how long this is allowed to go on is solely up to CCME management. Will they sit back and let this attack unfold or will they swat the shorts away? Time will tell.
Yeah I read it, but forgot that they were de-registed after he filed the ammended return.
When Ou Wen LIN registered those 6 million shares via the form 144, did they become available to be shorted against?
I hope the board is quiet because everyone is emailing Jacky about a dividend :)
Burp, I can't PM you but to respond to your reply - that is exactly my point. There is a growing consensus that the only thing that can break this short wave is proactive measures by management to further legitimize the company and put pressure on the shorts. With the short interest now over 3 Million shares management needs to get on the ball and announce a dividend, like yesterday. I think many people are getting tired of getting hammered while they sit on $150 million in cash.
There is no justification for such inactivity beyond there being a huge acquisition on the horizon, but there is nothing to indicate that is in the works. So we languish some more.
It is ridiculous for CCME to allow itself to get dragged into the gutter because of all of the other irresponsible Chinese companies, yet that is what they are doing.
I emailed Jacky again over the weekend emphasizing the importance of expediting any plans to combat the short wave (Dividend or Buyback). I suggest anyone that hasn't been pressing this issue with him take the time to send an email ASAP. This is taking way too long. It should have been announced by now.
jackylam@mediaexpress.com.hk
lcati@equityny.com
I also think that the general markets are heading higher by the end of this year. The catalyst will be the November elections. I believe that much of the malaise right now comes from the perceived anti-business and highly unstable political environment in the US. Big money is sitting out right now because they have no idea how high their taxes are going. Corporations are sitting on mountains of cash but won't spend any on expansion because they don't know where their taxes are going, nor if current revenues are sustainable.
Irrespective of individual political views, I think most would agree that a more balanced political environment after November should help stabilize things and fuel growth.
Fantastic close at HOD. Chart firming up. EOM
He is doing what many career traders do, which is trying to bolster his position. It sounds like he is sitting on a lot of cash right now, so of course he would like to see prices go lower because that will allow him to buy in cheaper. Some people disagree with those tactics, but it is my considered opinion that you should never let anyone talk you in or out of a stock. You should know what you own and do what you can to influence management to make the best decisions for their shareholders.
Joe may be very right, but Joe may also be very wrong. I'm betting that he is wrong on CCME so my money will stay tight. Either way, I think it is best to look at any FACTS that he supplies and consider them along with all of the other information available to you. However, if he, or anyone for that matter, is trying to claim they know what way the overall market or an entire sector is heading....well...let's just say they are being very presumptuous and history has shown us that they are equally likely to be wrong. If he had a crystal ball he wouldn't be chatting on a message board, he would be out sipping liquor drinks on the beach in Maldives.
Yes, exactly. I am of the opinion that the best defense in this scenario is an exceedingly aggressive offense. The shorts squeeze you, you squeeze them back twice as hard and make them cover. If they cover enough of their position it will no longer make sense for them to linger and try to "spring" anything on the company. They are forced to move on to a weaker host. Then CCME can get back to business as usual, which is making a boat load of money and exceeding everyone's expectations for growth and profitability.
I also believe that aside from getting rid of the downward PPS pressure created by the short interest, this would also help attract more institutional investors. They are all out there looking for the best ROI and CCME fits that bill, however looking at the current short position has to be a major red flag and turnoff for many of them, especially with all of the allegations in the CGS space.
If we see a meaningful divi and a buyback, in my mind there is nothing more to keep CCME from a clear run to the low $20s. For crying out loud, let's all just get rich already!
It definitely does look like institutions are helping form a more solid base. However, my biggest concern right now is the timeline for the divi and/or stock buyback. The shorts are systematically picking off Chinese companies with fraud allegations, lawsuits and nasty rumors. Every Chinese small cap with a high % of the float being shorted should be very concerned right now, because they are on the chopping block - whether it is justified or not. I feel like the shorts are almost fully loaded up against CCME right now and are getting ready to pull the trigger on something.
CCME can counter this by making their stock excruciatingly painful to short and thus force the shorts to move on to another target, but they have to be the first to the punch. Otherwise it will be game over. Fair or not, this is the world we live in. I hope Jacky acts swiftly.
Yes, very slow to load. It does say under construction, so hopefully speed is something they are working on as well. Pretty cool once it does finally load though! It looks like they are finally spending some money to get the site looking good. I'm glad to see that.
Excellent strong close going into the weekend.
I like it. I am very eagerly awaiting the impending short BBQ. Campfire is lit and Jacky has his hot sauce ready. I wonder if the shorts even know that they have an apple in their mouths and that they are on a rotisserie stick?
Shorts trying one last stop gap attempt to drive it down, but they are finding buying more buying pressure than they are used to. They are not going to be able to close it red today IMO. They are going to learn very soon that their days of dragging this stock down are fast coming to an end.
Like I've said before at least a dozen times, the divi that we all know is coming is going to be the death blow to them. I hope they lose everything they own on their way down - and our way up :)
2 million shares traded in the last 3 days. It sure does feel like the shorts are starting to cover and the float is getting locked up (hopefully by institutions). This will be confirmed if we start to see more impressive price movements when volume slows back down to normal levels.
Agreed. All that coupled with an oversold bounce and some much deserved China confidence.
I am licking my chops about the next institutional holding report. That will tell us the true story about where we are heading in the near term. I'm hoping that we see at least 20%.
A divi and some confidence boosting PRs will be the death blow for shorts.
Though I don't fully buy into it at this theory due to insufficient information, I'll feed it with a "what if" scenario. What if this is the reason that we have not seen a divi or a share buyback yet. If Jacky knows that an insider is shorting his way out of a big chunck of shares (which he definitely would know) there is no way that he is going to burn him by slapping him with a dividend payment.
It is either that or that Jacky just doesn't understand what is going on here, which is equally as bad if not worse. Either way, he is clearly throwing us under the bus by not taking action against this short attack.
Low of year on very high volume. If this is not an insider selling where are these unlimited shares coming from? For God's sake we watched 7% of the float get dumped today. We've turned the entire float over since the 10Q with continued downward pressure. We've left the realm of rationality long ago.
For someone with $600k long on a stock you sure are quick to call a fellow long a fraud.
Let's just try to stick to talking about the company instead, how's that sound? With this miserable PPS action there is plenty to talk about. The only crime going on right now is Jacky sitting on $150 million while we languish.
That is my understanding as well. This is basically an intent to sell, but is subject to the discretion of the seller. The problem at hand is if these shares do come into play we will have a massive dilution in the float as well as a further blow to confidence. That is all we need now is for the shorts to be able to boast about an insider dumping 1.7 million shares.
I know that I am beating a dead horse here, but we have to continue to pressure management to take control of this situation. If they do not step in and address this the shorts and dumpers could literally take this stock to rock bottom.
A lack of defensive measures is further encouraging this assault on the stock and could be setting us up for a complete disaster. Every day that CCME shows weakness through inaction is a day where the short’s ability to manipulate perception strengthens. Could you imagine what would happen to the share price if a fraud rumor surfaced? The only way to combat that is to take the shorts out and force them to move on before they have that opportunity.
I believe that to be correct; it wouldn't change the share count but it would increase the float since those shares would now be in general matriculation.
The volume tells me that there is a big seller is definitely here with very little regard for the price received for his/her shares. Whether or not it is related to this recent filing is somewhat irrelevant to me (though it sure does seem to make fit the circumstances).
CCME has been under constant selling pressure and short interest buildup since the first 10-K. I think I speak for many when I say that I am fed up with the share price action while management sits on this mountain of cash and seems to be doing very little with it. We were supposed to be adding 8k busses this year, but unless there is a massive addition late in the year we aren't going to hit that number, not by a long shot. There has been no hint about any other acquisition plans and no attempt to use the money to stabilize the share price.
Given the current valuation this has to be the worst run, well run company I have ever seen :) In all seriousness, I simply don't understand why management still has not acted. Everyone who emails Jacky (myself included) gets the same response - "That is interesting, we will consider all options" type of BS.
I don't think asking them to use $20 million of their $150 to save this stock is being unreasonable. Do you?
If the filing is true, then we have 1.7 million shares being dumped with seemingly no regard for share price. Do the math, this is simple supply and demand working against us. Shorts can use it as additional leverage and anyone looking to buy can have infinite patience and walk the price down as they slowly accumulate. Why rush to accumulate with infinite shares available at the bid and willing to follow you down if you go lower? This pattern could go on for a very long time without management intervention.
However, management doesn't seem to be very concerned about it or they just don’t fully understand market dynamics. The only thing that can combat a short attack, and now also a massive seller, is to do things to stimulate demand. A share buyback artificially increases demand by reducing supply and it boosts investor confidence. A dividend increases demand by increasing incentives and it punishes shorts by making them pay a fee for the shares they short. Both help legitimize the company.
How long does it take to put together a share buyback or dividend? It seems to me that Jacky is comfortable with the range that we have been trading in and is in no rush to take corrective actions that are necessary to buck this trend.
Perhaps he is still unloading. He has 90 days to sell those registered shares. That would explain our seemingly "endless" supply of cheap shares.
It is really inexplicable that he is announcing intent to get rid of so many shares at these prices. He makes one thing very clear - he does not see the price moving up significantly in the short term. Needing to raise some money is one thing, but selling off approximately $16 million of shares at rock bottom prices is a whole different ball game. This stinks to high Heaven.
Hey, but there is good news - he only has 5 million more shares waiting behind those 1.7 million he has made clear he intends on dumping at whatever price he can get.
Lets hope that Lin Ou Wen doesn't plan on dumping more of his shares at these rediculously low prices. The 60k shares he has shed isn't too much of a concern, but his 6 million remaining shares could kill us for as long as he choses to dump them. That is a massive overhang if he is now a seller. I guess time will tell.
Exactly. Earnings, cash on hand, future contracts, expansion plans, etc. are all subject to debate. We believe them, but there is room for the shorts to come in and instill fear and doubt about their legitimacy.
You cannot argue a dividend or a stock buyback. They are not subject to conjecture in any way, shape or form. They are a simple hard reality that will absolutely cripple anyone who betting the farm against CCME while pumping doom and gloom rumors in the interest of keeping the price repressed.
The time for action rather than words has come and gone, but I'll take late over never. I hope Jacky has something in the works.
I agree that is not the best approach. Further, I think that a dividend is an even better option than a buyback. A buyback would definitely help, and perhaps could be used in conjunction with a dividend, but a divi will actually make it cost money to short the stock and would also legitimatize the company in a major way.
That is the surest way to send a clear message to the shorts and drive a wedge into this attack - IMO.
The sad thing about what you are saying is that it is precisely true so long as management allows perception to become reality. I work in IT security and I've learned that perception IS reality. My competitors use this strategy all the time. If everyone thinks something is one way and their notion goes unchallenged, then it will be so - whether or not it is true. If people don't believe that CCME has $150 million in cash that can put the smack down on this short wave, well then the stock will be treated as if they don't.
Jacky and his team are the sole individuals that can put the faith back in CCME as a real player in the advertising space and right now their immaturity is showing, so the sharks continue to circle the waters. Hopefully they will begin to act swiftly in the interest in their self-preservation; and ours.
There is no justification for the current valuation, but there has also been no precedent set to show that you can't F#ck with this stock and get away with it. It is time for this sleeping dragon to wake up and bite back. Jacky needs to wake up and address this situation.
Agreed. The general markets are tough right now and this situation favors anyone who is short. That is why it is more important than ever for management to take control of this situation and prove that they are a shining light in a dark market. FMCN is doing it, we should be too - plain and simple.
At least it is a lower volume selloff. This is a situation that Jacky could easily take control of. It would be different if there was bad news about the company out there, but that is not the case. This is chronic underperformance caused by management's refusal to address the real situation - shorts. That he has not managed this stock better is the frustrating part of this. I strongly suggest everyone email him until he gets it.