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re: Lawyered Up
I am not a lawyer, but offhand I suspect that us longs with losses may actually be better off if it turns out that there was fraud on a massive scale. My thought is the worse the fraud, the more grossly negligent Deloitte Touche was in performing their audits. I suspect a judgment against Deloitte Touche Asia would be much easier to collect than a judgment against CCME. What do you guys think?
Many of us (mistakenly in hindsight) relied on Deloitte Touche's audits of the CCME books, among other things.
re: Lawyered Up
Thank all of you for your informative replies and the stickies. I think I will call one of the two firms that Koufax and Bullmarkets mentioned today, probably Cohen Milstein, and add my losses to their tally, hoping that one of them gets the case. Is Shapiro just as likely to take on Deloitte Touche? Deloitte Touche most definitely should be one of the defendants in this case.
re: Lawyered Up
Oops. Sorry. I just noticed the stickies above concerning lawsuits. I will check those posts.
Lawyered Up? Bullmarkets
Are most of the folks that lost money here lawyered up? I am a CCME money loser, but I haven't done anything about contacting a law firm.
I am not a lawyer, but offhand, I suspect any recovery from joining one of these suits would be a very minimal percentage of loss, no? Also, are there some law firms that are proving to be popular with the board? Any recommendations by those who have researched this matter? Andrew (Bullmarkets), you are a lawyer, aren't you. Have you joined one of these suits (assuming you lost some money?)?
Sorry if all of this has already been covered, but I can only check in on this board once in a while, and my search function seems to be limited since I am not a full Ihub member.
Let us all keep one MAJOR thing in perspective. At the worse you lost money, perhaps a lot of money. But you were not killed by a rushing wall of water, a terrorist attack, in a protest or otherwise. Please take some time to consider what you DIDNT lose.
Thanks for your good post. Most of us are indeed fortunate to have the opportunity to make mistakes and live to fight another day.
We know that Deloitte resigned for unknown reasons. We know that the CFO resigned for unknown reasons. That is all we know.
Unfortunately, we do know a few more negative things related to this story than the two items you named above:
1. The DTT resignation letter stated that DTT was no longer able to rely on the representations of management.
2. DTT's letter also stated that these issues may have adverse implications for the prior periods' financial reports and that, in their view, further investigatory procedures would be required to determine whether the prior periods' financial reports are reliable.
3. Nasdaq changed the Halt status from T1 to T12. Nasdaq has requested additional information from CMEE.
Just sayin....
I suspect they knew this was coming; positioned themselves for it one way or another, and now don't want to draw any more attention to themselves than necessary.
The most interesting comment in the Bloomberg release was that the two largest insiders Shaw & Starr had no comment. What does one make of that?
Well I hope the cash is actually there, but I am doubting everything at this point. I guess this has been discussed before, but before I found the board --- if they had the cash on hand, why did they announce a share buyback, but then never buy any shares back?
How do you explain the cash on hand at CCME verified by Ping and Deloitte had to have checked the cash early on in any audit.
At this point, I suspect his purchase was probably with other people's money and very likely just part of the setup.
His (Jacky) career will be finished and he will lose his butt on those 100,000 shares he bought.
So now the Nasdaq is no better than the old Salt Lake City penny stock market thirty years ago.
That's what they said about Enron and Crazy Eddie's. While it's now extremely difficult to play those games in America, it's extremely easy to still play them in China.
Can we conclude that none of the auditors in China, including those related to the big four, are doing their jobs? And can DTT just walk away scott free with no skin off their backs? It seems to me that DTT should have significant liability for this situation.
That is a worrisome list Headley. I was hoping somebody that follows the company more closely than I might reply to your questions, but I haven't seen any responses yet. I miss most of the activity on this board, so I wouldn't know if some of your concerns have been addressed here previously.
Preparations? What are the preparations you suggest?
You should be making preparations if you are on the west coast, particularly the Northwest.
Ok. Thanks.
as a buyer of the call, you can exercise at any time, also, if they are in the money calls, most brokers will exercise them for you unless you specifically give them instructions to not do so.
Now then the out of the money calls, you can exercise them as well and take your chances that the stock will run and you will make a profit, or you can just say goodbye to that money after expiry.
If you have in the money calls and not enough cash to exercise them, you can contact your broker and do a cashless exercise in most cases.
Yes, I have got some March calls that I need to see resolution on one way or another as well. So what happens to March option positions if for some reason the trading were to remain halted through next week?
i JUST HOPE THEY announce something by the time my March calls expire. I could make a boat ton of cash with little risk. Just loss of premium.
Thanks for the link. I just sent a complaint in.
During halt, please complain to SEC naked shorting
During the trading halt, please do your part and submit this form to ask the SEC to investigate CCME naked shorting NOW:
www.sec.gov/complaint/selectconduct.shtml
Hedge suggestions?
Well your optimistic take on this along with the fact the company initiated the halt rather than the NASDAQ forcing a halt gives me some hope, but I am still far from feeling positive about this. Hope I am wrong.
It seems to me that the chances of this being good news are not good. I can't think of stocks being halted for good news.
Clicking on the SA article and hitting the recommend button probably both help.
http://seekingalpha.com/article/253436-ccme-extensive-research-confirms-it-s-the-real-deal
A summary of the GH story finally just popped up on my Schwab news feed; that should help!!<g>
The headline says "Investors Rush in to China Media Express (CCME) Following Analyst Due Diligence".
The story on the Schwab newsfeed says:
China MediaExpress (Nasdaq: CCME) shares are ripping up the charts today, following a report by Global Hunter Securities which gave an updated due diligence report on the firm. GHS says that they visited CCME, and:Physically viewed contracts with bus operators, confirmed advertiser partnerships, tax filings, and bank statements over the last three years; Their short interest is 49% of float; and They reiterated their Buy rating and price target of $26. GHS also noted "we contacted the top eight bus operators (by number of buses) mentioned in some bloggers reports. Specifically, we visited Shanghai Ba-shi Public Transportation (Group) Co., Ltd, which a blogger said CCME does not have a relationship with. The manager we met there said they have 1,892 buses engaged with CCME (matched CCME s contract); the monthly concession fee is RMB1000 per bus and they started the 5-year contract in January 2008. Tianjin Long Distance confirmed they have 1,270 buses engaged with CCME, Beijing Yinjian confirmed they have 860 buses engaged with CCME, Beijing Xianglong A-er-sha confirmed they have 430 buses engaged with CCME, Changzhou Highway confirmed they have 500 buses engaged with CCME, Beijing A-er-sha confirmed they have 207 buses engaged with CCME, Tianjin Jinyu confirmed they have 117 buses engaged with CCME. We do not see any meaningful discrepancy between these numbers provided directly by the bus operators and those claimed by CCME.
Investors may recall that a sour note from Citron Research and allegations made by Muddy Waters have depressed the stock over the last month, from highs in the mid-$20s to a low near $10 per share. The stock is beginning to make it back to the upper-mid-teens price level that it traded at prior to all of the news.
Shares are up 18.9% today.
News Provided by Acquire Media Corporation
Good. I see the SA/GH story is on Yahoo Finance now. The title of the article is nice. Just curious, are the editors of SA subject to any restrictions on their investments? Do they have to disclose their positions? If the SA editors can get short before running China hit pieces and then get long before running favorable articles for the rebound, those guys have quite a racket going over there.
It is unfortunate that this compelling Global Hunter report does not show up on news feeds to my Schwab account, nor does it show up on financial feeds to financial sites like Yahoo finance. Conversely, references to the hit pieces are immediately picked up everywhere.