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Staar hired DTT advisory service to reserarch ccme 9 months before for 3 months and came back 100% clean. This was the MAIN reason staar invested- Its so strange im not making it up.
Yes- I think the fraud is with the Banks but its lending out money as collateral- It doesnt mean how much they are overstating their business- I use fuqi as best example-
Ceo lent out 80mill to a local Bank as a favor so it could increase its reserve- Im sure there is more to it. The ceo thought it would be good for business because he would get the money back- The problem he couldnt get the money back in a reasoble time or the auditor caught them- fuqi delayed every filing UNTIL eventually money came back. fuqi then put restrictions on the money and started an investigation. They reported ceo to the PRC- In my view this is widespread problem in China- Remember, CCME said they wanted to comply with the Bank confirmations but needed more TIME- meaning Linn and cheng brothers were doing something shady. Fuqi has doubled because they CONFIRMED they had part of money back 80mill in which the total might be 180-200mill in their account- They hired a new ceo-ect. My bet is DTT said they verified all the buses but 6%-everything else in their report is waste of time- The cash confirmations at Bank headquarters is the most important thing. Did ccme need more time to wash the money and bring it back- Hopefully we'll find out.
I was joking more about Staar having a big meeting in Beijing with the Government and cccme was suppose to move their headquarter there- I have no clue if ccme did or not-
I still believe Staar and the government will force answers out of CCME and referenced Staar connections to the Government. The answer might be complete fraud- who knows. If you used a contrarien indicator on message board and sentiment ccme is a buy -ha
Wctbills sold all his stock and moved on- I often wonder did he ever talk or really meet with Cheng?
Go take your medicine and run a long and you might need to double the dose these days
Heeheeeeeeeeee
Cheng is a Buddhist and gives away a lot of time and money to charity and the poor - you two would get along well - ha
From wtbills blog - my last post
Just spoke with Cheng Zheng on the phone... I told him that it appears the stock will reopen for trading.
He said, the company's lawyers are on top of things and the business is operating normally.
When he said that, I knew that's about all he can say. But I proceeded to ask further... how normal are things?
He said, the company decided to bring first-tier legal firm and big-4 auditor to do this investigation. It's the right thing to do for the shareholders and will go a long way to clearing its name. He said he is confident that the investigation will go well.
I asked, if the company will make a statement to that effect, he said, he will let the lawyers work on it...
Again, I knew he wasn't going to say anything under advisory of his lawyers.
As for the office headquarter move, it will happen in June... that's the final thing I asked him.
Speaking with Chinese executives on the phone is tricky... if I push too far, he won't answer my call anymore. But that's all I could get out of him today... lawyer-speak.
I think it was pretty well known that they would it was planned - obvious their has been no news at all - I thought staar news was extremely good - you don't think staar in talking about the government about ccme ? Cmon , - the Chinese government needs and wants foreign investment And partners but on their terms - having staar - one of the best and longterm partners with credibility - getting ripped off of 30-40million is not good . I also say why would linn brothers defraud a powerhouse in china with obvious deep connections -
Staar buys 20% stake in STATE controlled insurer today -
The had huge signing with the mayor of Beijing today as staar , one of most respected Chinese investors , buys a 20 % stake from the Government - right down the road ccme opened up it's Beijing office but nothing will happen to them or their no risk to them that they defrauded staar out of 30million and investors .
I'm sure staar has no friends in the Government as you can see with this major deal . It was reported in Reuters and in china today . The deal was also report as the Government wants more foreign investors in the their local insurance agency - staar must feel pretty good making this deal -
Ccme might be a fraud but my point I think staar and the government will force them to the truth .
Today shows staar has some very strong connections inside the government .
global halt is a problem but:
1, it was first reported 100% that it was based on share count.tr
2, you orginal had stated that it had to do with " naked shorting" and the regulation that was going to happen on july 16th- you said you could see the mother of all short squezes
3, then we find out its company related -they have no transfer agent.
Does anybody have a clue about gobal halt?
Sector coming back
As ive stated i think it bottomed june 30th because last 20f and the rebalance od russel gobal index as like 60 chinese companies got thrown out because of the steep decline made their market so small- Everyday if you look at top 5-10 winners on nasdaq its a chinese stock lately-- FFHL had huge move last- CSKI is up 50% in a week- FSIN-my favorite has bounced almost 25% this month- EFut another holding bounce 20-30%-cast looks grt- Fuqi is about to break 4$- Their is money to be made
on the ground research
Please anybody going to China please do some ground research. Go to CCME headquarters-Go see other companies. The sector is so beat up that I think you will get some 200-400% returns from these prices. Look forward - not backwards- Maybe ccme a grt buy at 1.60$ if it goes to 6-7$-thats a homerun- Not just ccme but their are tons of other companies in the space. I feel a lot of Chinese people got buried alive with these stocks and are now just throwing in the towel- Remember- 2 years ago ccme and other chinese stocks were cheap in price and most of them went up 200% at the top. Its a disaster and I dont expect massive moves like that but you will get some 1-2$ chinese stocks that will be 5-8$ in a year and thats a nice return-
Staar conspiracy is ridiculous in my view -
They lost what 30-40 and stated they still have the securities and they look like complete idiots that's why they are spending millions of dollars suing -. Like I've said let it play out - it will take longer then you think. The other thing I disagree is the Chinese Government is not going to do anything - the Chinese Government meeting with the USA Government to set up guidelines this week and they have stated publicly they feel confident they can work things out - this is front news headline in USA and china - my cousin is in hong kong in the securities market and he told me the Chinese Government hates most getting embarrassed by the USA especially regarding honesty . People get killed in china over fraud - read what happened to ffhl a Chinese USA trading Company - 2 for life - one for death . Again , I have zero clue but ratheplaying the whole sector . I just think you will eventually get the truth on ccme . What I can't stand is the people who says they talk to cheng because I can't get any feeling on their integrity and they change their mind on a dime -
Also - Dorothy is s Chinese citizen and staar has been china for 50 years so cheng and linn brothers are just going to steal their money and go where ? The longer they drag this out the better deal they have in settling the case - the linn brother have close to 400mill assets that trade - I don't think ccme is a complete fraud - I think they pushed their numbers to get earn out shares - even muddy waters said it wasn't s complete fraud but overstated their number- at 5$ it would cost them what 50-70million to take it private ? That's sounds pretty good when you have 400mill assets , in the paper all the time , getting sued that brings out dirt , getting investigated by the sec , headline and business risks- that sound pretty good to end it and move on . The longer , uglier, less talk from management , lower stock price , like AtV investors will pray for 5-6$ - if your ccme that's what I'm thinking at this point . What are they going to pump the stock o 8$ and look for 15$ dollar where they know a price they can't do it end walk away clean
ATV is great example
The management offered to buy 20million or abt 25% of the Company in a tender offer at 6$.
The board came out and told investors not to do it because value is dramatically higher and management was taking ADVANTAGE of the fear in the sector and this would give insiders majority control . The tender came back and like it was oversubscribed to 28 million which tells you how bad investors want out of the sector .
If ccme came out in 6 months and settled with staar and did a private buyout at 5-7$ the deal would be celebrated and would bail everybody out - that's what I'm betting on . The linns got 300 million asset in Wuyi , the Government is after ccme , the headline risk is huge , the political risk is huge , staar lawsuit is lingering over ccme . If you want take a Company private relatively cheaply the lower the price and more investors dismay the better chance you have to do it . Last wctbills text to cheng was please take it private at 6$ and investors would be happy ! Hrbn only finally got accepted because stock blew up to 6$ and board had no choice . If you read Peter sirris letter a month earlier the board thought 24$ might be to low and could get sued - when you get max pain like ccme any buyout look great .
The key really is piper needs to be completed because if it comes back like the spokesman said in wsj staar has no grounds on anything and has zero negotiations power really to get their money back ? Would staar negotiate a 10-20% haircut to get their money back or trade on the pink sheets ? Would investors take 6-7$ just to move on ? You better believe it . Ccme could totally go black but again you got staar and Government is after them - you got 300mill asset in hong kong - is it cheaper just taking them private at 5-6$ then linn 300mill risk in hong kong ? When USA regulators meet Chinese this week ccme is front and center - do yo think staar wants cheng in jail ? They want linn in jail ? Yep - a cheap deal clears it all up -
It's funny the minute the someone sells a stock for a loss they automatic bash it and hate the company - human emotions
The strange thing is staar hired a division of DDT advisory to do a 3 month investigation before they came back and invested what 40million and said the company was 100% clean - obvious their is serious questions regarding DTT 's credibility regarding anything - people forget in the initial filing ccme denied all their claims and said they hired piper to investigate all DTT claims - I read the report and saw dome positive things in which they verified 95% of the buses under contract - the Saic filing are questionable because it's just for license - hrbn Saic fling dont come close either but that deal was investigated by all the big players . The small cash transactions are a joke . The forensic talk to their customers was a joke - every audit in America has small descrapancy "s . The simple fact is DTT wanted a forensic audit because of the shorts in which they listed the emails and articles from the shorts - ccme rightfully did not want to and DTT headquarters basicly said almost exactly what the shorts said was their concerns . Their is no doubt accounting problems with ccme and a lot emerging companies - that's why it's 1$ not 20$ - let's see it plays out and moves forward .
I'm hoping : the staar lawsuit keeps putting pressure
The sec is meeting Chinese Government about these problems next week and ccme is front and center .
China does not like getting embarrassed by the USA and this again has been headline . The linn brothers have 300million tied up in Wuyi pharma in hong kong . Staar has been a longterm partner on china and has a ton of credibility . Ffhl 3 founders were convicted for fraud - 2 life in prison , one executed and they took all ffhl stock then resold to private investors - Chinese don't like frauds - I just hoping for the truth and answers and I know they might be ugly
wuyi website-send them email
nobody with that kind of mustache is a fraud hA
http://www.wuyi-pharma.com/html/about_chairman.php
Thx for the filing
and I agree with the worst case scenerio.
I hope they let you back- their are only small number of people posting anyways and you provide great inforamtion which is the key.
buyouts
The key to buyouts from private equity partners is say bain is buying CFSG for 9$- if they looked at the books in theory they think its worth a lot higher price than the markets priced which signals the pricing of the whole secter is out of whack-
In addition, it reduces supply in the whole secter as 2-3billion leave the space- the secter is a disaster and people want out
ATV is good example: the management offered to buy 20million of stock at 6$ per share on a tender offer. the board came out and recommmended against saying the price was a joke and way to low. When the tender came back over 25million bucks or over the bid side wanted out at any cost- most rational investor do not want to sell to insiders-
wuyi -linn got most of the money in dividend
if ccme's not a total fraud the argument since linn and cheng own most of the stock the easiest thing is to settle with staar and take it private at a low cost- maybe thats why they got rid of their trasnfer agent- settle with staar in full because he has preferred right then take it private at 5-6$ which at this point most people probably be happy and that would clear linn brothers
i agree but it will hurt more when stock gets cut in half
hong kong have specific rules about conduct of board members and management. if linn brothers blow up bad wih ccme i thibnk they will be forced out of chairman of wuyi.
i agree but it will hurt more when stock gets cut in half
hong kong have specific rules about conduct of board members and management. if linn brothers blow up bad wih ccme i thibnk they will be forced out of chairman of wuyi.
Long ccme - short Wuyi from these prices look like a grt pair trade .
Ccme has around 60milliom mkt cap- down about 300-400million
Wuyi has over 1 billion mkt cap -
The linn brothers founded ccme and sold stock to staar .
They are the chairman and board members of Wuyi .
Their's been headline risk that shorts like muddy waters is moving to hong kong for potential frauds . Wuyi paid a big unexpected dividend right after ccme disaster which shows either or both linn brothers wanted liquidity or they did it to calm shareholders down . Common sense the linn brothers and Wuyi are vulnerable of tge fact linn brothers were involved in complete fraud of cccme. I think you get a hit piece on Wuyi by year end because it makes sense because of ccme and linn brothers .
It would be interesting to see what Wuyi is telling their big shareholders on ccme ? I'll shoot them email this weekend on my concerns - ha
Sino forest somewhat partner business lost 50% in hong kong when muddy came out.
At worst you want linn brothers to get blown up in hong kong holding and frankly they deserve it .
You can't found and run a fraud in china and a legit company in hong kong . This is the main reasons I speculate a position in ccme because with staar and linn brothers you got headline risk to clear ccme up and move forward .
ha- it took fuqi about 1 year to officially move the money bank and they just stalled for one year- somebody said if the communist high up ask you to move 80mill to local bank for its collateral and you will have it back in 9 months you dont ask questions. fuqi delayed everything until the money was moved back then they put on restrictions on moving the cash-
story gets stranger
You got question WTF DDT was doing?
their advisory division on behalf of staar does a 3 month intense investigation and says everything 100% clean.
Then their audit team resigns a year later.
At least CCME commented and denied they were introduced.
At this point anytime somebody from CCME comments is a good thing-ha
thx-What was today filing then which was pretty direct
DTT concluded that the bus information provided by Fujian Fenzhong wasinaccurate. Fujian Fenzhong claimed that there were 22,205 buses playingCCME programs but DTT concluded that this number was overstated byapproximately 1,330 busses.
The gave "exact number" they thought it didnt state anything else.
thx-just little confused
Bus number is huge
That doesnt sound like 100% fraud to me when DTT counted 20k buses
Also in the wsj ccme spokesman said their were confustion with subsidies of bus companies that had contracts but not counted that piper investigation would clear up. Piper investigation would prove wrong all major points by muddy waters would be false.
the BIG NEGATIVE is the global halt-going dark scenerio right now-
THe bus count in the staar lawsuit at these prices is extremely bullish.
linn brothers in hong kong
I'm still on the side of the company, BTW. If they pulled off such a fraud and fooled Deloitte in the past, then I eat my pride and join those who got hoodwinked. I never met the Lin brother's who are the chairman/directors of Wuyi Pharma, a public company in Hong Kong. If they are caught, they lose their board seat in their HK company too. Rich people don't need to commit fraud like this...
CCME moved to its new offices already right.
Fuqi hasn't filed anything in what 18months and went basicly dark
if you to want get stroked by a VP which is fine
Fuqi only moved when they made official comment about the fraud-when it was 2$ bucks everybody said it was 100% fraud.
I thought cheng was always nice to you and took your call.
wow grt find mikel300
It always takes longer than you think.
I own fuqi which is up 50% in last month and they didnt say a word for one year and delayed filings for over a year. Their first word was ceo moved 85mill to a friends bank account for a favor- Fuqi has spent the whole year trying to keep the ceo out of jail. The money was moved back with restrictions, they hire a new ceo and moved the old one to chairman role. they reported the ceo actions to the Chinese government. this took one year in my view to simply try to find a way to get ceo off but they confirmed the cash- it took one year. I think fuqi goes double digits in a year. These stocks are not for trading- Every investigation i have seen takes minimum 4-8 months and they WILL NOT release anything until its complete-thats common sense. I have zero clue but my view a big part of the company is somewhat legit- i think ceo did a fraud thing with the cash like fuqi-Staar on record researched them for 3 months. I think UNFORTANTELY ccme is trying to do anything to protect Cheng and the Linn brothers right now which is sad.
Even if CCME should prove not to be a fraud, Plaintiff purchased CCME’ssecurities at artificially inflated prices and was damaged thereby. When the misrepresentationsand/or the information alleged herein to have been concealed and/or the effects thereof wererevealed, the price of the Company’s securities significantly declined; the Company’s auditor,DTT, and several board members resigned; trading in CCME common stock was halted; andultimately CCME’s stock was permanently delisted, rendering the stock effectively worthless
The only positive is basicly staar whole reliance is from blogs like citron and muddy waters- also as i stated BEFORE the audit began DTT wanted a forensic audit on allegations by bloggers which in my view is crazy. DTT was resigning no matter what because headlimne risk- staar wants their money back because of the headline risks too- THe grt news is they ripped apart the lin brothers who sold them stock and in my view are dramatically more liable than cheng because they sold stock to staar and more important they have a big asset in hong kong. The only positive is linn brothers are smart businessmen- why would they willingly sell millions of stock to big guy like staar if they knew it was fraud scheme-
linn brothers is where the big risk is because they are founders, board members and own a billion dollar company in hong kong. I expect a hit piece on Wuyi pharma this year and surprised it has not happened- You cant run a legit hong kong company worth a billion and a fraud in china- also, my hope-full belief is this forces the linn brothers on cheng.
Great lawsuit-going after everybody
Going after linn brothers and everybody until we get some answers.
CCME is a real business.
Time and investigation will confirm.
We are in a perfect storm.
patience.
DLA is still on the team and that could only be a good thing.
This was you post 3days - just change your mind over couple drinks - ha
I thought you talked to cheng all the time and he was honest guy - ha
Fie structured is direct ownership but Also I believe their local business is audited by the Government whether it's Saic ot sat taxes . Vie is basicly just a contractural agreement between management and basicly their local business and is not audited - ccme is vie but remember DTT brought up concerns that ccme Saic and sat in some instances did not match their sec filings - their has been huge discussion in regarding Saic filing- ect -
Fie I would think is better structure but in reality it all comes done to the ethics of the management and board- bidu is a vie structure and so are billion of market cap companies that are legit and honest .
What does this have to do with ccme or are you saying because ccme is a vie that they are going to break their contract and go dark ?
CCME comment was strange because he wasn:t asked anything directly
he just he hears 5 more deals and wont name companies like CCME-ha
yep secter will be better
one because its getting dramatically smaller- He said he expect 5-6 more deals in the two weeks- look at the news of ATV- i expect 2-5billion of small cap china supply to leave the market thru takeover, buybacks, insider buying. You will get dramatic more transparency and GREED will come back. Fuqi has almost doubled in three weeks on the pink sheets because they SHOWED they are in the game. I also like fsin and jrjc. Ccme is my other pink sheet play that frankly i have no clue now. Their will be huge homeruns in the secter.