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Wow, I didn't realize the only thing standing between us and Stalinist Russia was the ability to freely burn coal.
The things you learn on message boards.
I'd love to see a link to the idiot saying that!
He's really playing the victim card?? In that article he blames EVERYONE but himself.
Seriously?
and btw, Enron would have been just fine and EVERYONE would have been made whole except for the stupid foolish regulators causing problem.
Fraud allegations, accounting irregularities, corrupt CEO... not really so different.
Enron and Worldcom were real businesses too. Just sayin'.
CCME is a real business.
A dubious investment thesis at best. They're spending money on lawyers because they, like any other defendant, are forced to defend themselves in court. It doesn't really speak to their innocence.
If ccme is a fraud they are wasting tens of million in legal costs for no reason ?
SPRD - MW My new saying is, "beware the weak hit piece". Seems it's often just the first shot across the bow.
I suspect Muddy Waters found something very wrong with SPRD but they're not telling us the whole story yet. The weak hit piece is used to draw in buyers while they short more shares, and make existing investors dig in their heels.
I don't know if this is the case with SPRD, just saying be cautious.
They took Muddy Waters and Citron laying down. They were silent when DTT resigned, Jacky resigned, board members resigned. The said nothing when Starr sued them. They ignored it when NASDAQ halted then de-listed them and the stock fell over 90%.
Anyone waiting for these guys to redeem themselves is dreaming.
If CCME isn't a fraud, they may want to consider speaking up and telling somebody at some point.
Exactly! I'd love to see an example of a dead pink sheet stock with accounting problems that were suddenly 10-baggers. It's a complete fantasy.
I'm not too worried about the shorts, I think they'll be ok.
And CCME is not going to $10 unless they reverse split.
The interesting part of this is what happens to the shorts?
The borrowing costs are high and the volume is next to nothing, how do they get out?
Anything positive and this can go to $10 because next to nobody can trade it.
Somehow I don't think a disclaimer basically saying "We take no responsibility for the fact that everything we're telling you might be a lie" gets them off the hook.
Larry Isen - Remember this guy?
CCME is the one stock that will "break the short's backs". I'm shocked he left this up...
http://www.emergingchinastocks.com/marketing/20110307/?r=240
Or he could have cooperated with the auditors and put out a timely 10-K, that would have saved him too.
Remember, they have to win this lawsuit. If not, Cheng Zheng will be gunpointed and he will lose everything.
Is it not a reasonable conclusion when a company is accused of fraud by several different sources, the auditors resign, the CFO resigns, board members resign, then their largest shareholder sues them and they drop from the NASDAQ to "caveat emptor" status on the pink sheets, that things might be VERY wrong?
lots of long holders sold and took their lost and cannot reason anymore.
"Who knows", is right.
Based on the complete lack of information and their willingness to sit by while the ship sank, I have to conclude that something very shady was going on. Something potentially unfixable. If it was a simple mistake or misunderstanding, they'd wouldn't be in the pink sheets right now.
Even if they somehow come clean on everything tomorrow, who's ever going to trust them again? Even when they were on the NASDAQ and investors had full faith in them they still couldn't manage a PE over 4 or 5.
Jacky calling this an "emphatic warning" seems incredibly disingenuous to me. He passes it off as a potential problem of doing business in China, not a specific issue that was inherent to CCME. And I've seen no evidence so far that this mess was caused by "difficulty in hiring and retaining a sufficient number of qualified internal control employees to work in the PRC." Complete BS in my opinion.
The full section from the 10-K says:
CME may have difficulty establishing adequate management, legal and financial controls in the PRC.
Most PRC companies historically have been less focused on establishing Western style management and financial reporting concepts and practices, as well as modern banking, computer and other internal control systems, than companies in the U.S. and certain other Western countries. CME believes that, with the current finance team led by the CFO, it will be able to maintain sufficient internal control systems to comply with Section 404 of the Sarbanes-Oxley Act. However, CME may have difficulty in hiring and retaining a sufficient number of qualified internal control employees to work in the PRC. As a result of these factors, CME may experience difficulty in establishing management, legal and financial controls, collecting financial data, preparing financial statements, books of account and corporate records, and instituting business practices that meet Western standards. CME’s inability to maintain sufficient internal controls to meet the requirements of Section 404 of the Sarbanes-Oxley Act could impair our ability to timely meet our ongoing Exchange Act reporting obligations, may result in the failure to identify and assess the risks of their business and internal control system which may cause misstatements in its financial reporting and may result in a qualified opinion on its audit of internal control.
The CEO said that stuff back in February, haven't heard much since.
Key accusations by Muddy Waters are wrong.
Looks like something may be going on with the stock, but, as usual, investors are left totally in the dark.
He was probably thinking, "What can I say to keep people buying the stock so me and my buddies can short more shares of this fraud?"
You have to wonder what Carson was thinking when he remarked something along the lines of, if CCME clears the audit (10K), it will probably head back to $20, if not - MW price target.
There's very little difference in a company that doesn't exist and one that exists but has allegedly committed fraud and shows no intention of staying listed.
That's exactly the problem. No one knows what it's worth and it's management's fiduciary duty to keep us informed on such things.
...they know what it's worth.. does anyone else..
Almost 2 weeks since the stock cratered and still not a peep out of management.
Management has gone through a few token motions but that's about it. The results speak for themselves at this point. I'd say CCME is not a fraud in the same way Barry Bonds did not take steroids. He didn't admit it, he hasn't been convicted, but we all know what's up.
All the while all CCME has done is keep fighting and hire the biggest guns to try and show they are real ( which none of the others accused did).
If that was what happened, I would whole-heartedly agree with you.
Ping Luo did heavy DD and put her reputation on the line. She saw the books and personally talked to clients and the stock still collapsed like an old Vegas hotel.
IMO any value the company may still have is trumped by the CEO's incompetence / corruption and lack of will to fix anything. Any investment right now is a complete shot in the dark.
I want to give a big thanks to Bullmarkets. He did one hell of a job as a moderator and was nothing but a gentleman.
Andrew I wish you nothing but good luck in the future.
1. "Carson Block"/Muddy Waters realizes that a certain portion of the company exists- and gave it a price target of over $3.54 for the existing business.
Carson Block is a short and he pulls his price targets out of his butt.
2. Unrealistic hopes by many for CCME to "open at $6.00 and short squeeze to $11.00+" which never materialized. So- many threw in the towel last week when the "MOASS" they told themselves would happen, never materialized.
Those hopes we're based on management giving updates and actually trying to fix the issues... They didn't.
3. ANYONE who really wanted out of CCME at any price would have bailed last week. There would be no reason to hold over the weekend at all if you intend to sell in the near term...at least none that comes to my mind.
The people who wanted out did so for many VERY good reasons.
4. Volume Friday was pretty light considering the circumstances--- CCME has had normal trading days where volume was higher than today...so I think the "sell at any price" sellers have been exhausted now.
Volume was likely drying up because interest in CCME is drying up, along with the real possibility that they will go dark and shares will become worthless.
5. And yes, I strongly believe there will be an update early in the week from the company on business operations
Investors have been waiting for an update for months with no luck. There's no reason (other than blind hope) that there will be one now.
I say not a chance, but the question doesn't even matter.
If Cheng wanted to come clean and stay listed, he would have done it. He hasn't shown the will to fix anything. There's no reason to believe management is on your side.
Question to all...maybe I'm being delusional here but can this stock realistically ever recover even if the audit proofs the company to be legit....
Why wouldn't you sell, take the tax loss, and put what's left of your money into a stock that actually deserves to go higher?
i'm still in. as others have said, as it's almost a total loss already, and as i had mentally and financially already written it off as a loss, i figure i might as well hold on for the slim hope that some good news will give this thing a bump
The CEO caused the problems and showed absolutely no interest in fixing them. Cheng's scam is now complete and loyal investors were left holding the bag.
Don't jinx us Andrew!
The CGS sector has taken a decidedly negative turn recently, that's just the reality of our situation. Negative posters have saved me from being stuck in UTA and NIV and saved me a ton of money recently. If I'd heeded Rato's posts I could have a ton more on CCME.
Getting rid of valuable posters won't change the sector, it will only limit our understanding of it. Short of personal attacks or crazy predictions, I want to hear what people honestly think. Good or bad.
Humor usually has a strong basis in truth, and I'm thinking you're probably right on the money with your comment. Then again, if Cheng can manufacture a short squeeze out of his butt, I'm not going to question it.
I guess my humor escapes you...
All he needed to do in the first place was keep clean books and deliver a timely 10-K and we would have had that short squeeze. He's no genius.
If we get our audits done and show a clean house, we will get a massive short squeeze. Then all the posters here will be shouting from the rooftops what a genius Zheng Cheng is, many will even convert to Buddhism. Go figure, which ever way the wind blows...
Lol, who are they trying to kid?
The Company has initiated a search in order to identify an independent and appropriately qualified director to fill the vacancy left by Mr. Kung’s resignation in order to ensure the Company’s compliance with the Nasdaq Rules.
I agree. Management hasn't lifted a finger to solve any of the problems. No new CFO, no new auditors, no new board members, nothing, zip, nada. It's not rocket science here, the NASDAQ tells you to do something to keep your listing, you do it. The fact they just blew it all off really says something.
We all got scammed!
Deleted messages - For the future, if I post something here I really intended for the group that reads this board. My comments on AERL were sincere but a bit off the cuff considering it's the CCME board not the AERL board. I don't really care to risk picking a fight with a passionate investor on the AERL board or the CGS board over some comment I post here. Then again, if I accidentally post something brilliant, feel free to re-post it everywhere! LOL!
If they really did hire a new CFO may be they could maybe tell us about it? Maybe? Just this once? ...Oh nevermind.