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UTA files clean annual report
What if some auditors simply paniced this year because the SEC letter stating they could be prosecuted in their was fraud.
DTT signed off on 2009 numbers
WCTBILLs said that DTT now was asking was unreasonable and crazy and ccme did not have enough time to get the information.
In china-everything little shady but what if its not remotely close to what the shorts say. As Pearson said if your 5% fraud your stock will get liked- but you will recover big time.
Also, CCME can't say one word to the investigation is down-who would believe them and what would they say. the dream:
Piper comes back clean but had small issues with Cash balance trasaction- they now put on restrictions. CCme hires PWC as auditor- All starr claims are a joke.
Oh yea CCME going higher if anybody cares at this point
Muddy will blow up now
They pre packaged this report to hedge funds 30days before releasing it. The short interest in Sino almost doubled in the same- It was clear front running and the legal authorities are looking at it now. Also, they will be sued within the week by Sino.
Is there short interest on pink stocks filed?
Need some good news in the secter
the secter has been a complete disaster in which im hoping a bottom is formed this month based on :
Ibd basicly raised the margin to 100% for everything China- it usual happens at the bottom.
Have seen massive index selling
Funds like fidelity have been dumping the whole secter
everybody getting dramatically underweight
lot of prop desk managers will not let traders play the secter either way.
The slow comeback:
1, no more reverse mergers-no more raising money
2, the secter has already shrunken dramatically in market size
3, more insider buying and buyback reduce supply-Vit,tstc,cast-ect
4, more transparency-Cis-vit-Hsft reporting exactly what banks hold the deposits and how much-
5, need more deals like CFSG- need 7 plus more deals in the secter to reduce supply
6, need good news out of disasters-ccme,cagc,fuqi, rino
this would slowly shift sentiment
Maxm -new buyer- fyi
Block will blow up just like Henry blodget
I'm still shocked SEC has not come after him YET.
The simple fact he is front running his position because he comes across or wants the market to believe he is a LEGIT research firm.
If your a LEGIT research firm you can't own a position or front run it. The second point Sino had massive shorting pressure two weeks before the hit piece. This is no difference from the insider trading case you are seeing today- Block is telling or hinting to friends before the hit piece is coming. The hit pieces are market moving from research firms which is insider trading or front running. He is a shock Jock and his 15minutes of fame will be over soon.imo
New markets makers involved
Its been very thin the last week with basicly nite dominating both sides of the market.
today, we have some new market makers involved.
It's financial crisis - prices means nothing
This is all out major financial crisis in china small caps -
During every crisis at the end prices mean nothing because their is zero confidence in the secter.
It doesn't mean that the prices are right and history tells you this is where fortunes are made -
It' usually gets worst before it gets better - it's not a v shape recovery - it will start with stabilization and long base and big gains are usually 1-3years from now .
The simple fact this is complete meltdown of biblical proportions in this secter where everything will be sold no matter what -
If I told you ccme would be cleared and would be 15$ in two years confidence is so bad nobody would believe it or buy a share . Does anybody feel like building a huge position in ccme at 1$- nope
The price is irrelevant and finding bottoms is a joke when your in complete meltdown mode
At some point it will end and their will be price discovery -but we are still in the middle of the storm .
Huge china index selling last two week across the board
Msci index removed a ton Chinese small caps from it's index
Fidelity as usual imploded in the group
I'm sure vanguard imploded on the group
This what's happens on every bottom - every time - that's a fact .
It will go lower but historically the big index guys implode at the bottom-
Get me out - oops the index is already down 40% - get it off the books -
When David teppin bought 1 billion of bank of america at 2$ who do you think was selling - he was only bog buyer
" if you want to make big money you need to be the first one buying not the last "
" the most money I ever made when I was the only buyer in a security because if I'm right it only gets better "
" wctbills has no clue and is a great contrarian indicator "
3 great qoutes from smart money .
Muddy target was 3.60$ and he obvious a scare tactic guy on every company. However, his point is he thought the company was real but overstating their business. If the company is 50% real you still get 4-6$. I think he grossly exagerrates all his claims to bring max fear in the market and his short. No different from Blodget putting price targets 300% above the markets during the bubble.
The simple fact out all the reports Muddy did he was least bearish on ccme business than rest of companies. For those who think its a complete scam.
Thats why email Nussbaum
and rub that letter in his face in a nice - polite way. He won't respond but it makes me feel better and he looks like a complete idiot. Maybe Nussbaum will be right overtime especially if Piper gives them a clean report. Maybe if he reads emails from investors he will push ccme to finish the audit quicker- Everybody got an ego-He gets paid no matter what but his reputation is on the line with that letter.
Nussbaum looks like idiot- I agree
But lets see where the stock is in a year. The market was dead wrong at 15$ and i think its wrong at 1$.
Also-CCME is not going dark- The company has filed every relevent information out there: Stock is a disaster i agree but at tops of markets people believe the stock prices are telling them great things- bottom the exact opposite.
I agree Florida
I think its a fuqi with the ceo did something illegal with the cash. I'm not wildly bullish but the stock is priced almost as a complete fraud now. If ccme was a complete fraud going to zero i dont think Nussbaum -his compliance department would have him publish that article is my point- I agree with your prices.
SEC going after Chinese auditors-expects prosecution-WSJ
I really hope DTT guys get killed here-they deserve it. The simple fact they signed off on 2009 numbers then waited for last minute to resign cost investors hundreds of millions. Simply them signing off on 2009 numbers they should be fined dramatically. Also, as Nussbaum said in his article- Chinese big auditors are resigning because of FEAR of the SEC and lawsuits. Nussbaum might be whatever but he is talking about ccme in that line. You can blame ccme of course too. However, in 2009 DTT tells ccme we need these 50 bank statements. they come back without warning in 2010 and says we need 200 statements. WCTBILLS said what dtt was asking for was not normal and unrealistic. All ccme said it needed more time.
No matter what 99% of all investors would not invest in ccme if DTT didnt sign off on 2009 numbers-
WCTbills said if Piper there by may 21 its great news.
My top 3 plays
Affy- small cap biotech-partner with Takeda going after Amgen monopoly-Big boys are buying-fidelity- blackrock-5%-jay jefrey grt biotech investors- Just filed NDA for approval in forsrt quarter 2012- it should get a pump like most biotech into this or a takeover- The pump i think is 10-13$ then will sell. If approved over 20$.
Jrjc 4.50- own a huge position at 5.40$ average- China internet-5$ net cash-filed 20f-very transparent website-IDT ventures owns 20%-best USA based china investors- Vertex abt 10%-with management they own about 50% total of company. I think they go private at 8$ within a year.
3. the bloomberg small cap china index down 40% this year. Historically this is where the money can be made big because of the secter every stock in it is killed. The tricky part is obvious finding the right ones. I think secter bottoms in next 45 days-20f and coming out you will get more transparency. Look at vit-cis reporting where all their money is-what bank and amount. When your in it you never think it will recover. It should base over 6-7 months-no v shape- and have big move next year.
I'm shocked it trades so bad.
I have zero clue why it traded this ugly. Usually they open it at low bid then rally it. Cagc opened up at 1$ and rallied to 3.80$ before settling ard 3$. ccme had buyers at 4.50$ at the open. That was the initial price for millions of shares. The simple fact whether shorts or longs that was the original price-
To blowup straight down is very strange but thats why i drink a bottle of red wine every night.
I think it takes a longtime and don't ever think it trades great for maybe 3-4 years. As reference- fuqi has not filed in 18months but if you do research its a real business. Fuqi made a filing pointing out the problem with their cash, restrictions on cash and basis they plan to eventually file. Fuqi traded as high as 4.25$ on the news. Cagc basicly said they would file its ard 3$ as reference. I think after june the china small cap secter on a rate of change will be better- say from awfull to not great will move the secter. This is based on all the audits will be done by that time. After that the massive fear of auditor leaving is over. Also, you could also say if you made it thru this years audit the company probably clean. So i think secter hopefully gets better. then with ccme its all about news. If they breath like Fuqi-cagc it should trade i think back to 3-4$ range. However, these things always take longer to sort out and sentiment to shift to normal. If ccme is completely legit i see best 5-7$ in next 18months because it will trade at discount for a long time. I'm hoping with the staar lawsuit is pushing ccme to get piper done. The only leverage they have against staar is a clean report- if they get clean report staar has no case and maybe we get a settlement-
ive said it numerous time
1, history of massive blows up in a secter- Banking secter-Bac
Mbi-Hig-Aig, high yield bonds, ect- India technology fraud is best comparison-
Satyam stole 1bill bucks- company hit 90cents but recovered to 4-6$ redf got killed too with whole india secter -it hit 1$ then hit 15$ 1 month ago- it takes a long time
2, Ccme is more researched than most of chinese small caps- There are ton people who have seen the buses -ect -
Staar researched it for 2 months and hired outside investigators
Ping- for compliance reason documented 100mill in sales from customers not ccme- why would they lie and its documented for when global hunter gets sued
3, dtt signed off previous year-jacky ran the company- dorothy sat on board- the company exist- The lin brothers run a billion dollar hong kong company-Nussbaum letter stating auditors are resigning simply because of fear-who is he talking about
4, their is a major problem- the problem i believe revolves around cash balances and moving money illegally- fuqi ceo moved 80mill into 3 corporate accts at local bank to do a favor for his friends or make it look like the Bank was stronger- The money was moved back but its illegal- Fuqi is trying to protect its ceo who is majority owner-
5, ccme is more than 75% real in my opinion but the ceo did something shady- he might not thinks its a big deal in china-moving money ard-but it is USA and now they are trying to get ard it
6, Staar lawsuit had nothing in it- Kung almost didn't resign-Board wanted to have protective measures with money- Hired piper and appealed the delisting.
he is either a moron or a genious- probably never know- ha
yea- jacky worked there but the company doesnt exist
staar did months of research but ccme didnt exist
ping talked to 100mill in rev customers that just lied which she documented for compliance reason
dorothy sat on the board for a company that doesnt exist
Cheng stole money or moved money ard for his best interest and is trying to cover it up- yep
Big bulls capitulating historically a good sign.
good luck-
capitulation=bullish
I'm very bullish with my first buy at 1.45$ and plan to average down.
I still believe no way Nussbaum and his firm writes that letter unless ccme is somewhat legit- I believe in that letter he is talking about ccme because its the poster child for what is going on with auditors and hitpieces. Nussbaum is not that stupid because if ccme is worthless his reputation will be hit hard in china.
Also- the guy Wctbills- i see his website and says he talks to Cheng and he says all positive stuff. Obvious the stock price is causing great emotion and panic for investors-
Also, satyam computer ceo stole 1bill and the stock bottomed at 90cents- the company has somewhat recovered back to4-6$ range and this is a billion dollar company. Their is always complete pessimism at the bottom- hasn't changed in thousand years. It will take 1 year to play out if you look at history-not months-.
its either zero or 6-10$ are your odds.
Staar keeps the pressure up
I still think Staar lawsuit is good for shareholders because they have the deep pockets to keep the pressure up. Also, staar did months of research on CCME so there is something there. They have zero leverage agaist Staar until the Piper audit is complete- My hope because of Staar lawsuit and pressure they are trying to get this done soon-in which they could respond to staar all claims are baseless-ect. So the hope is because staar is going after them hard is they need to get that Piper thing done fast.
Murf market maker big buyer
First real big buyer in the market the last week-ouch
Nite as usual has been dominating the volume
good luck
I agree but I've dealt with lawyers and the number one rule do not say anything unless it's 100% fact . Ccme getting sued by staar for huge sum plus getting sued by regular investors - anything you put in writing or say could be used against them even if it's a small error . I just think 2 things changed that are positive :
1, they hired piper
2, Nussbaum wrote that letter and ccme is by far their biggest headline client . If Nussbaum wrote that letter with massive positive innuendo's and ccme goes down a complete fraud Loeb and him lose a ton of credibility . Trust me everything is related as you pointed out with DTT reputation is getting hurt big time with what just happened. So Nussbaum writes that letter, gets signed off by their compliance department but they know ccme is fraud . No way in my view ? You know how much loeb 's compliance team went over that public letter . loeb and Nussbaum are going to go down as a guy who defended the number one fraud out there - ccme right is getting priced as one of the biggest . My point is no way he writes that letter and his compliance signs off on it unless they feel very comfortable ccme will be okay .
Finally - ccme did not think they would get delisted -they appealed . I'm sure they thought after they hired piper the stock would not trade under 2$either . Nobody on this board thought the stock would ever trade at this level. The price of the stock hopefully Pushes the management and loeb to either make a statement or finish investigation quickly . That's what I'm hoping - that's why the email - the price of the stock.
Going to email Nussbaum from loeb
And basicly refer his article about Chinese stock and say we need some information on ccme -
My point is at this price -1.30$ investors just want a comment that the Company is not going dark and plans to finish the investigation and eventual file audited returns . It's a simple statement and doesn't bring up any restatements -ect but simple states the Compsny is not going dark and piper is still working at the firm .
I don't think it hurts at this point and he is there lawyer - Got keep trying and just a statement that they are not going dark I think stock is 3-4$. IMO
its weird
Opco downgraded CIS and VIT because it could no longer rely on DTT audit- CIS announced a 20million buyback and stock has reversed hrard from 12-18 in 3 days-I dont think anybody has clue on this secter right now.
nobody has a clue in this secter
Stock prices are in general basicly are showing nobody has a clue.
Its just going to take awhile before markets gets comfortable with this group. My point is YONG traded awfull up to this announcement-a huge deal like this nothing got leaked or people just dont believe anything. CFSG announced a going private deal and stock actually went down after to 5$ because nobody believed.
We then find out Bain is behind the deal its 8.30$. The whole group is just a disaster right now. I think you had ton index-fund money blowing out this secter before months end- Maybe in a couple weeks you will get some signs in the market. right now its basicly sell-
I agree but I have dealt with lawyers all my life . Staar structured the investment with severe consequences which you would think ccme can't be a complete fraud because of it ? You just know ccme lawyers are telling thrm we have no bargaining position until we have the outside audit by piper -
People keep saying there is no news on ccme: They hired a top firm to investigate - I mean blue chip .
They tried not to get delisted . They are appealing the delisting which all the other companies like fuqi did not . It might not mean anything but it a silver lining they think could be cleared up by piper.
The staar lawsuit was a joke - zero smoking guns which is great news . Dorothy sat on the board and basicly had nothing but the shorts and stock price . The staar lawsuit in their view is the best and fastest way to get their money back and move on . Staar knows ccme could drag this out for years and if piper comes back clean ccme doesn't have to do anything . Staar knows the company is too high profile and will take years to get back to 15-20$ even if legit . So staar I believe just wants to get out even and maybe keeps some warrants -if staar settles with ccme it validated their is a business and money and I'm sure part of it will be a nice statement .
If this was a complete fraud you don't hire piper or you don't sign that deal with staar.
That's my positive spin - the lawsuit by staar was a joke to basicly say we want to settle and move on - it's a threat - ccme lawyers say if you get clean audit by piper staar has no chips to bargain with - until the piper news is done no news .
Staar lawsuit keeps ccme quiet
There will be no news until this lawsuit is resolved . This is a huge lawsuit against ccme and it's management personally - this is huge- you have read the lawsuit how much risky cheng has personally in it .
Ccme lawyers will not let them say a word because of this lawsuit - common sense . Ccme has no bargaining power with staar until the piper thing is done . I still ccme is a one shot deal:
You need the staar lawsuit settled then it's all clear - until that happens there will be zero news.
The grt news I think we know in next 45days - remember - the terms of the staar deal is not simply money but dramatic risk personally to the management . This case needs to be settled then stock I think goes to 4-6$ quick-
If piper comes back clean staar has zero leverage in lawsuit -
How does SEC and NASDAQ let ccme trade until the audit was done - how does that protect shareholders
Nope but they were getting huge pressure from the shorts , clearing houses, brokerage firms to let this trade to unwind the short position -
They couldn't wait 30 more days to finish the investigation .
What happens if piper clears ccme , it settles with staar , goes private at 8$. NASDAQ gave the shorts a way out and killed the little guy - congrats -
End of the month heavy selling in the secter
You got a big family or idex basicly dumping the whole secter hard
You cant blame them -get them off the books
Big selling last 24 hours-fsin, chbt, hrbn, basicly everything small cap chinese has had volume selling pressure-im sure every fund dumped ccme- you might get a better view in ccme trading wise in 5-7 days.
fuqi hasnt filed numbers in like 2 years.
cagc board members are 5x more shady than ccme- past boards.
ccme is dramatically more researched on FOOT than fuqi or cagc combined.
CCME looks more legit than either one in my opinion or they are not that different.
Im not that bullish on ccme- i just like the odds because at THIS PRICE i think your downside is 60cents- your upside is 5-7$ but its going to take a long time.
opened up at 4.55$
thats the strangest part because that showed we had decent size buying pressure at that level. usually in a halt you get a massive gap down then a recovery. Cagc opened at 1$ and rallied to 3.80$ and its ard 3$ now. fuqi opened up at 2.20$ and rallied to 4.20$ and now ard 3$.
CCME completely did the opposite of anything normal i have seen.
it traded a ton of volume at that level and then died straight down. Ccme had more shorts than both fuqi and cagc.
my only guess is the long base is lot stronger in those two companies. Fuqi you also had news too.
"irregularities concerning the bank account balance"
She resigned because she wanted to take" protective measures".
Thats all you get from dorothy in the lawsuit.
1- ccme appealed the delisting which means they strongly didnt agree with and/or hopefully they think they have relevent info to get listed, other companys like cagc-fuqi did not appeal.
2, ccme stated they needed more time to get the info to dtt- to me that means time to get the cash over.
3, ping and global hunter will be get a subpoena on her notes that she interviewed 100million in revenue from customers not ccme. ping said that she kept grt notes for compliance purpose on everybody she interviewed- including bank statements
4, the strange part Dorothy had nothing really to say in the lawsuit- she wanted to put in in certain proactive restrictions like in my view the cash at fuqi.
5, Marco stayed on a week but wasnt happy with the ceo on how slow he was moving for information- ie cash.
Then what a couple weeks later they hire a top firm to investigate the company and so far no news. The first thing they reviewed is the balance sheet- first thing- cash balance, ect. Cheng moved all the money back to ccme.
THis is what im betting happened
I think this is widespread in china- Also, its not huge deal on the books but its illegal. Fuqi spend the whole year in my view trying to protect the CEO who owns 40% of the company. The ceo could go to jail in China but its a grey line because the money was sent back. THe problem is like CCME the guy who did it is the biggest shareholder of the company.
http://finance.yahoo.com/news/FUQI-International-Announces-prnews-2454698566.html?x=0&.v=1
Shorts bribed DTT?
I have to tell you it looks shady on DTT part or coicidence?
The two big hit pieces they cover that they previous audited all sudden they now find things they dont like and resign. Remember, this is a local affiliate not the real one. The shorts made 200-400million probably so a bribe of 1-3 million is well worth it. No matter what it shows DTT is incompetent. OPCO came out and downgraded 2 blue chip chinese stocks simply because they couldnt trust DTT- Its crazy.
Huge selloff in secter today
During any financial crisis it usually ends irrational at the bottom or max pessimism-Im sure you got lot index related-funds
just basicly telling their trading desk to get completely out of anything China small caps. The simple fact we obvious need some good news. CFSG was grt news on friday with buyout from Bain Capital. Reuters reported that "china orphan" funds were being set up to take these companies private. This was completely offset by more on LFT freaking disaster. We need some good news in the secter would help then obvious anything from CCME.