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And if the shorts really were confident then they would have let the price run up, and then stepped in and shorted much higher.
What we have here is desperate damage control, lol. They have to try to keep us below the 50 MA, we break that and its on.
Time for the shorts to use whatever ammo they have left to try to keep us under $16.
Check out the site http://www.switow.com/ just the kind of news we needed to get the ball rolling.
Wow this is incredible, I really can't believe there is a hedge fund shorting the strongest China growth stock in terms of fundamentals and they can barely hold us below $16.
Float approx: 10 million
Shares short: 5 million
Institutional holdings: 4 million but by now well above 5 mil and rising
Strong retail: My guess would be 2-3 mil waiting for the 30s and higher
All we need for a squeeze is a piece of news like MS coverage, in come the momo players and its game over hedge fund. If I was Starr, MS, or anyone with deep pockets, I would just buy another million shares off the market to get the ball rolling.
Thanks for that link, I've seen a video of him taking about that but I've never seen the transcript.
It really does make sense when you realize how desperate the shorts in CCME are to salvage something. The thing they need most though to make that strategy work is volume and today the volume is lacking which is fine with me.
I agree that ad rates would go down, but in the case of CCME the ad rates are already discounted compared to what other ad companies are charging. CCME has already said they'll raise rates in 2011 and even then they will be low. In any event, organic growth, more airport contracts and any aquisitions made will more than offset the unlikely event of ad rates going down.
What's wrong did the shorts take a break? I'd have thought for sure with this light volume they'd be pounding the bid with 100 share lots.
Wonder if people finally see the big picture and are holding for some gains.
I don't think CCME fundamentals would be impacted by a decrease in consumer demand too much.
Remember they advertise on buses and mass trasportation is the preferred method of travel for people in China. Another thing to note is the very low rates CCME charges advertisers compared to other companies, if anything the rates will only go up even with a downturn.
But the biggest advantage as you pointed out is the cash hoard of $200mil+ and you combine that with the savvy management of CCME and I am fairly certain they will take advantage of market conditions and make some solid moves.
The link is broken but I got enough laughs from the excerpt:
Shorts feeling the pinch early on, lets see if it continues.
True, we'll see if he won't shed some more light on the the allegation.
Something else to consider is there are most likely a good number of credit rating agencies in China one is right here, and I'm sure some are more subpar than others, perhaps not checking SEC filings at all and maybe only going by old SAIC filing which usually don't report anything. But in any case, its not a concern when you have cash audited by DT and Starr with regular access to statements.
If someone really wanted to check the claim and had the disposable income then they could just as well pay for a report on CCME from several credit rating firms.
With regards to the allegations of a poor credit rating, its just that, an allegation. If anything the poor rating could be because of the lending restrictions from the PRC or because CCME doesn't really have assets other than the cash on hand. Can't remember if the cash was in HK or mainland which also might have something to do with it who knows.
Either way even if it were true, I'll side with Starr who just excercised the warrants and top four Deloitte.
I actually really like the article and the red flags Maj pointed to are all worth considering when doing DD about a potential investment.
The full article found here has suggestions a company can make and all companies in this space would do well to read the list over and make some changes. Thus far, CCME is ahead of the pack into making the right changes and continues to separate itself from the pack.
Well said SuperDrive, I've always wondered why many people give credit to shorts and assume that they know something that others don't and that they have deeper pockets and can do what they please with the share price. Its that exact sentiment that allows them to do what they please, even though they are usually full of garbage. By far the most ludicrous claim they could have ever made was that CCME didn't have the money even though it is audited by DT, and it doesn't end there either, just look at the ridiculous claim made against UTA.
I've kept track of a number of stocks that shorts have attempted to bring down and the only one that they have been somewhat right with is RINO and I still don't think RINO is an outright fraud, even though they did screw up. All the other stocks are higher from the original attack and most have reputed the shorts claims. I'll be the first to give credit where credit is due and thus far the shorts don't deserve any credit.
We are holding one of the most undervalued stocks of 2011, and people assume that the shorts are still in control, which in turn gives them control. It was the same story when we were below $10 and its the same now that we are below $20. Those of us with the guts to stick it to the shorts will be laughing this time next year.
The after hours volume is substantial enough to make me wonder if we might just get a pleasant surprise tmrw or it might just be momo players getting in early for the inevitable squeeze. We'll find out tmrw.
FMCN down more than $1 today, only a matter of time before more people start transferring the money to the greater prospect.
Overall a decent day and if there's one thing I believe to be true its that CCME management will continue to be proactive in building shareholder value. I wouldn't be surprised to see the CFO or other insiders making some more purchases especially if shorts keep trying to bring us down just to send a message.
The management of CCME gets an A+ from me with the way they've responded to suggestions and have done all they could do thus far to build shareholder value. Hope you all hold on for the ride to a 15-20 P/E cause its just a matter of time.
The sellers are shorts, weak retail, and profit takers who believe we'll follow the pattern and go down after the news as has been the norm, they don't concern me.
The buyers on the other hand are ones seeing the value and opportunity. The ones that will help lock the float long term. If shorts, weak retail, and traders want to give them shares below the 50 MA so be it.
We will agree to disagree on which is more important:)
lol, no need to panic even if we close under the 50. Its part of shorts strategy which shouldn't work this time.
I'm less concerned about who's selling and more interested in whose buying the 2mil+ shares that will trade today.
Shorts really trying hard to break $16.10, exciting stuff.
After reading the list you made one could question why CCME is only 10% of your portfolio. On the other hand I'd suggest you carefully consider what your comfortable with and don't regret your decision for better or worse.
Personally, CCME is the only stock I'm comfortable holding long term so it makes up a big part of my portfolio, and I'm not worried in the slightest. Today's announcement just made CCME the poster boy for CGSs.
Divi Amount - They could have easily put in the pr 5-10% payed on a semi-annual basis, but they didn't so I assume it will be 10-20% annual dividend paid on a semi-annual basis of 5-10%.
Most likely it would be the lower so 10% annual dividend which is great considering their net income and the fact thats its a small cap growth company.
I read it the same as you. Not yearly 5-10% but semi annual, so 10-20% which would be significant.
Yeah sell on the news mixed with the shorts motto of 'time to go down with the ship' lol.
I have no doubt they will try but its game, set, and match. Funny since they even had stern warning from Bronte Capital.
Here I was taking a couple weeks off and first I get the alert of Jacky's 100k buy, and today I get the news of a divi, doesn't get any better than that.
All I can say is its vindication for us longs who've had to put up with the shorts bs for the longest time and we'll finally be getting some serious long term holders to dry up the float over the next few months.
Still plenty of good news to look forward to as well such as, forward guidance, new coverage (MS comes to mind), IBD 100 (only a matter of time), and as management has proved if need be they'll step up with their own money and make some serious insider buys.
Good weeks/months ahead for us.
Starr excercise is good news in my book, better than a cashless conversion. Shows they want more shares and see the long term picture, they aren't worried. Plus the extra $10 million CCME now has can help pay the dividend.
Still hasn't stopped the shorts though, shares available is down to 200k from 500k yesterday. Lets see what happens next week.
I share some of your frustration but I always like to look at the positive and where we will be 6 months or 2 years from now, especially when I haven't been able to find anything negative, and believe me I've tried.
I believe he gets it from Interactive Brokers. Here's a link:
http://www.interactivebrokers.com/en/trading/ViewShortableStocks.php?key=ccme&cntry=usa&tag=United+States&ib_entity=llc&ln=
Not sure where you got that idea from, but the only thing that can drop us to those levels will be panicked longs, even then there are still 3+ million shorts that have to cover.
We all knew after the cc on Nov 8th, we weren't going to get a divi announcement until early next year, Jacky said as much. Its all a matter of being confident in what you hold, if you wouldn't be able to handle dropping into the 10s or 12s maybe you should consider selling so you'll have peace of mind.
I was just thinking the same thing. There's no way to predict how this stock will move day to day, the only thing that's certain is long term it will go up, and Monday's have proven to be bad days for the shorts.
Looking good so far, next we'll see if the rumor about MS coverage comes to fruition sometime this week, maybe next. That along with the guidance for 2011.
Definitely the shorts, but damn the panic selling that follows. The only plus I see from today is call volume which tells me some kind of news is coming, it could very well be the coverage from MS.
Tell you one thing, I'm getting tired of the fickle investors who give shorts a free lunch and even more tired of the shorts arrogance.
Wow I just got on now, wtf is happening here?
Yeah we'll get one in the coming weeks for sure, hopefully a little less conservative. Most people seem to have already forgotten the news we had about 2 weeks ago. An additional 2000 buses added to the network will make 2011 a good year.
Remember how the shorts piled on below $10 and everyone thought an article was coming? All those guys got burned and everyone gave way too much credit to shorts.
The garbage BOWS said just suckered people into shorting a stock that is still way undervalued at these levels. The end result will be the same as when we were under $10 and no fraud will be found, just more shorts cursing their stupidity.
Its simple, people let themselves get scared by a little bit of negative sentiment and then the shorts use the opportunity. Its actually really funny to see how the panic spreads.
Not to mention people with no integrity who try to scare weaker retail by posting bs about a short attack that is 99% inevitable, which also causes stupid retail to short the stock thinking an article will come. A vicious cycle of nonsense really, lol.
He did say he was from India so he's probably use to the British form of spelling past tense words. Being from Canada, I've learned both forms but its much more common to have the words end with the 'ed' here.
That's my grammer lesson for the year:)
Less people selling out of fear when the markets are up. And patient people on the bid...for now.
lol, looks like we had the same thought:p
Same here, not to mention the use of caps, TO REALLY HIGHLIGHT THE NEGATIVE POINTS has a close resemblence to yahoo.
Excellent news, I keep on getting more and more confident about CCME hitting $4 EPS for 2011. My rule of thumb will be to tack on $1.50 to whatever conservative estimate they give us for 2011, and of course that won't account for any aquisitions done next year.