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I'm no expert but I would think with an investigation going on that they couldn't buy their own stock based on internal information related to the investigation where that info is not available to the public.
Blame games, nothing more
Actually, I don't see anything on the SEC website
Paulson is in a similar boat:
http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/paulson-dumps-its-entire-sino-forest-position/article2068199/
Paulson dumps its entire Sino-Forest position
Paulson & Co., which until recently was Sino-Forest’s (TRE-T2.73-0.46-14.42%) largest shareholder, has sold its entire position in the company.
“Due to the uncertainty over Sino-Forest's public disclosures and financial statements, we have sold our stock and await the results of the independent committee's investigation,” the hedge fund said in a statement released by its public relations firm.
The announcement was made public in a regulatory filing for the period ending June 17. The disclosure states that Paulson’s position has fallen from 34,714,300 shares to zero, meaning the company has sold its entire 14.1 per cent stake.
The filing does not disclose the date on which the securities were sold, or over how long a period they were sold.
However, a few days after Muddy Waters released its report full of allegations against Sino-Forest, the company said in an interview that management had been in touch with John Paulson, who heads the fund, and he said that he continued to hold his position.
"We are certainly in conversation with him and others to talk about what is going on and things that we need to be doing and the alternatives that the company could undertake to respond to some of these allegations. It has been friendly, supportive and suggestive discussions," said Sino-Forest’s chief financial officer David Horsley.
Paulson showed up as a significant shareholder above the 10 per cent threshold in 2008, when the fund held 18.6 million shares, representing a 10.2 per cent stake. That position grew over the next three years and before Sino-Forest's stock started falling in April, Paulson's stake was worth as much as $878-million.
APWR may be latest to bite the dust in the China space.
I think many have doubted this Co's statements for some time. Look for a continued plunge today
http://pr-usa.net/index.php?option=com_content&task=view&id=780918&Itemid=32
Following a substantial stock price decline an investigation on behalf of investors of A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) over potential violations of Federal Securities Laws was announced.
If you purchased shares of A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR), and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on potential securities claims against A-Power Energy Generation Systems, Ltd. resulting from allegations that the company may have issued materially misleading financial statements and business information to the investing public.
A-Power Energy Generation Systems, Ltd. reported a substantial increase in its annual Revenue from $98.70million in 2006 to $311.25million in 2009. However, it reported a decrease in its Net Income from $28.52million for 2008 to a Net Loss of $16.69million in 2009.
Shares of A-Power Energy Generation Systems, Ltd. (NASDAQ APWR) rose in 2008 as high as $30.79 during June and fell until the end of 08 to $3.45 per share. In 2009 APWR shares increased from as low as $3.36 in March 09 to $19.58 on December 24, 2009. Since then APWR stock fell to $1.85 per share on June 17, 2011 when A-Power Energy Generation Systems issued a press release announcing that Robert B. Leckie had resigned from its Board of Directors "as a result of concerns that his views on process and best practices were not necessarily shared throughout the Company."
The same day an article was published on Seeking Alpha raising a number of red flags of fraud at A-Power Energy Generation Systems, Ltd, including allegations that the 2009 financial statements filed by A-Power Energy Generation Systems' main subsidiaries with Chinese regulators showed less than one-tenth of the revenue and cash balances, which appear in A-Power Energy Generation Systems' financial statements filed with the U.S. Securities and Exchange Commission.
Those who purchased shares of A-Power Energy Generation Systems, Ltd. (Public, NASDAQ:APWR), and/or those who have any information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
If they lost trust in management and wanted to legally protect themselves, it makes sense that they would cover themselves from all angles and assume they cannot verify anything about the companies financials or operations. I would do the same if I were them, even if a week before finding issues I could have said everything checks out.
If and when any positive news comes, it doesn't look like it will move the SP much in this environment. YONG came out with pretty much the best news possible and still its languishes. Granted we are much more undervalued if there is remotely the level of cash on hand we all wish for, but the reality is that any recovery will take time and good news from other areas of the sector will be needed to really improve SP. There will need to be general comfort with the China space again, which is lacking at the moment for several reasons, the greatest but not the least of which is potentially rampant fraud.
For me, any day that there are no resignations is a good one!
I don't mind waiting and watching the mood shift somewhat on CCME. I still think back to that most depressing of days when the DTT announcement came...
It's still at $2, but it hasn't yet gone from worse to game over... though it did go from bad to worse with delisting.
They refer to Cheng's letter, which was in fact a strong denial and refutation. I don't see why they would need to repeat what is in that letter if they are going to refer to it in this document.
It's an awful list to be sure. I wonder if once the decision was made to resign, this could have been DTT trying to protect itself from all angles. If they had relied on management representations in some way in these areas, all would be thrown into question if you can no longer rely on management.
no need to say this more than one time then. If you want to discuss your technical analysis in detail, some people might be interested. But maybe limit the "it's going to $5" comments to once a week...or month...
FU to Zheng, but bigger FU to Block if down the road most of these companies are more of less cleared.
It's not just that this sector required attention and reform, it obviously does, but the model that Muddy has brought forward to attack and collect while others pick up the pieces and attempt to recover is fundamentally corrupt. This rinse and repeat model will be applied easily in the future to other companies and other sectors. They have started with easy targets, but there is nothing to prevent the spread of this activity, which is truly fraudulent activity.
Even if the practice does expose some legitimate frauds, this model for making money in the market will need to be addressed by regulators b/c it by no means serves the market as a whole, but rather a select few firms and individuals.
Very true, if this ever gets to $20 again we are talking a very long, multi-year timeframe in all likelihood. YONG is very telling
Not strange at all, very predictable that sentiment and tone will shift with the stock price and any news/changes to the situation.
wouldn't put much stock in this, but from YMB:
Rumblings in Shanghai growing. 14 minutes ago
We've picked up arguably a 90% consistent set of "projected findings" from 3 different colleagues in Shanghai on matters regarding the internal investigation. The Company should expedite some form of "direction" to the Market so as to do a CYA in case these "rumblings" are in fact accurate and were leaked to the Market. The market is "tight" ...with many trying to cover ... however, the availabilty of shares is extremely "DRY" .... and the tension is growing!
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Re: Rumblings in Shanghai growing. 2 minutes ago
Would be interested in the 3 scenarios of rumblings you learned of -- I only have one contact there and the feedback we heard last night was "positive" for CCME ... if the "rumor" is true. Thanks
As in, refute their allegations
I think we all wonder the same thing and assume the worst, ie, that there was huge fraud perpetrated by Zheng and collaborators.
It is plausible however that this is more of an issue of personality, cultural factors and general incompetence/stupidity. Zheng's stubbornness and arrogance could have lead to a my way or highway approach especially if there are some things he wishes were not made public (unauthorized loans). He may also be trying to get back at the shorts in one foul swoop. As inexplicable as it may seem, he may have thought the best way to exonerate himself would be to build a rock solid case rather than with letters and statements. Again, this is ludicrous as an approach to such a situation from my perspective, but not everyone thinks the same way about things, particularly when the stakes are so high. He may also think, those that don't trust me may loose out, but that is their problem. I will buy up more shares at a better price or go private.
I was thinking the same thing
Violent swings in SNOFF.PK today
Yeah, and yesterday he said he didn't know if they had started the audit. Why put any stock into what WTC says? I agree it is a good sign, but not because WTC said so
Hope and pray, no longtop here. Fuqi-type not so bad. Yong-type surely the best. How I would love to be in on the Piper-Zheng conversations
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.
Was he really that uncertain about the research?
True, what a huge contradiction that he wouldn't know if the audit started while previously having so much insider-like info to share
At this point, even with a low probability of a positive outcome, I still will not sell at these levels.
Even he didn't know about LongTop when he wrote that. Banks are in on it! Get it!
I certainly feel like LongTop was the nail in the coffin for CCME. Seems very likely that this is what occurred and explains how so many were duped. I suppose it may not account for client checks by Ping, so there is some hope some revenue is there, but in all likelihood there isn't much of that cash around anymore.
Just waiting for resignations at this point. Chances of even a slightly positive outcome at this point would have to be around 2-3%.
I assume with the news from LongTop Piper and PWC will be devising a strategy to determine whether the bank information will be accurate.
As others have noted, there may have been a "coming to Jesus" discussion before Piper and PWC signed on, but perhaps Zheng thought he had bank support at the time. Now the bank will be under intense scrutiny as well.
Each day that goes by without resignations, the better...
I think many possibilities have been discussed on this board regarding the bank balances.
Look, I am not saying the weight of evidence is not convincing, but I would not say it has been proven. Further, if I was a journalist writing for the NY Times I would certainly not say this in a conclusive way. The letter contained no events like that in LongTop's case that would indicate an orchestrated cover up. It may have occurred, but we don't know that yet. Piper and PWC will find out and either tell us or resign if they are stonewalled or feel they are being lied to.
I only own a little of the stock and it doesn't influence my rational and logical approach to these circumstances. The fact is there is no conclusive proof at this time, and for the NY Times to say that fraud has been demonstrated clearly lacks journalistic integrity.
The fact is that pointing to a lack of PR is just the sort of non-evidence that shorts have been using. It may have convinced you and others, it does add to weight to accusations, but it certainly doesn't conclusively prove anything other than what Michael has suggested about mgmt being totally shit by not supporting those that had trusted them.
There seems to be little hope in the face of such coordination, particularly when Co's like LTF are offering such blatant examples of fraud that involve banks, of all parties, thereby offering all the ammunition required to separate investors from their shares.
Piper and PWC may eventually clear CCME, but it seems this sector will take years to recover. CCME could go private $4 a share or less and all the stranded longs would take what they can get.
From CCME's perspective this assault came from overseas, so if shareholders want to take action and recover losses they should go after those foreigners that launched this attack on the co. Even if the forensic audit goes as any remaining longs hope, I don't see much light at the end of this.
This is quite a statement given the lack of evidence seen in the LTF case:
"In mid-March, just after the fraud at China MediaExpress was exposed..."
CCME and the DDT confirmations could very well mirror the situation of LTF to a significant degree, but it isn't up to the journalistic standards of the NY Times to make such a statement at this time.
Picker,
Could you provide any additional info you can share at canzen1@hotmail.com?
It can recover, the question is to what and by when, assuming good news starts at some point and continues. I think in two years it is POSSIBLE though unlikely that we look back and the story goes something like "...remember all those hit pieces against those Chinese small caps years ago, CCME was one of those that eventually came out clean and people who got in at the lows made some crazy money...". If earnings are near what was once expected, I think if the audit turns out okay and earnings reports start coming in and then, followed by an uplisting and a growing market cap the recovery could be well on its way.
Given the current reality, this would be a most unlikely eventuality, but it is an illustration of a few events that could cause people to put recent events behind them and contemplate the future for ccme. How long would this take to materialize? Who knows...
Again, at this point it is much more likely CCME goes dark or in some way disappears into the sunset or more appropriately, the abyss...
New post by WTCBills:
http://ccme-info.xanga.com/
He posts a text message conversation:
Me: Stock has fallen to $2.10.
Cheng Zheng: It'll come up, we are certain.
Me: Best is to release an announcement to privatize the company for $6/share. This way, folks can recover some losses... possible?
(silence)
Assuming this is true, hard to know how Zheng thinks of WTCBills. I'm sure by now he knows that his messages and conversations are circulated and read by US retail investors. Maybe he is keeping the price up to sell more shares? But then why not come out with some positive PR?
I tend to take people at their word, but that is obviously frought with risk. I too have held on to my shares despite the emotional rollercoaster of last week. I'm hoping it turns out to be only a momentary paper loss, but I accept that it could all be gone in a few weeks. If some positive things happen, we may recoup some of our investment.
It is hard to imagine circumstances or sentiment changing when we are all so low and experiencing and imagining the worst of scenarios. Some positive findings for CCME and maybe a few other Chinese companies and things could start a long turnaround. At less than $2 a share, it can only get a little worse from here...
Best day to trade
What do people think in terms of timing?
When do you expect the best price? First day? Second? Third or fourth?
I simply plan on watching price action and getting out with something I can live with, but I have heard a range of opinions in terms of when people anticipate that best price will come.
Some expect it to happen later on day one with a first wave of covering, others have advised on being patient on a multi-day basis and selling on third or fourth day.
Wish I read this before my purchase. Balanced perspective from a short for a change: http://variantviewresearch.com/
ne of the promoters, Ou Wen Lin, filed form 144 with the SEC that he was planning to sell 1,060,000 shares. After the stock tanked, the company issued a press release basically claiming that this was a typo or similar mistake, and that the correct number was 60,000 shares. One month later, Lin sold 1,000,000 shares through his vehicle Thousand Space Holdings. The company had no legitimate incentive and clear disincentives to issue this press release. Lin sold at a very low valuation and the company tried to cover it up.
It does not make sense that the company would sell shares to Starr at such a low valuation. Taking into account the deep ITM warrants, they sold equity to Starr at a very low single-digit P/E at a time when the company had NO legitimate need for capital.
On Dec 9, 2010, the CFO purchased 100,000 shares at $15 according to a filing. However, the insider vehicle Bright Elite Management also sold 100,000 shares at $15 on the same date according to a different filing. This was not a normal insider purchase, but a deceptive investor relations stunt.
Interesting exchange on YMB:
Starr is an opportunist like any other hedgie or trading firm. If they see the $$$ in gaming this "perfect storm" scenario to make big $$ to the upside, they will amass the capital and other hedgies to join them in propping this up before dumping at max value because of the short interest. This stock and situation has taken on a unique situation in that it does not matter if it is a good/bad stock any longer. Arbitrage by big money will decide how it will go when it re-opens. So, the shorts are not guaranteed of victory though it seems that way right now. If a bidding horse puts "lipstick on a pig" as the saying goes, it will appreciate because of the market forces at play. With the halt, it slows down the game and allows CCME or any number of "big money" players to plan their move with precision. Who knows what back-end deals are being planned. If I was CCME and even if I knew my books were a little fraudulent, I would find a sovereign Chinese wealth fund (after all the CEO is well connected with the Communist party) to be the bidding horse behind the scenes to prop this "dead horse up" and really turn the seemingly given outcome on its head. This would be epic and unheard of, but the trading halt allows capital to be positioned IMO.
Re: Highest percent of float short during financial crisis 23-Mar-11 02:34 am
precisely what I said before but not as eloquent as you put it. The amount of money at stake on both sides is quite incredible especially for a short term trade. The halt has provided the time for aggressive and smart hedge funds to possibly get together and study the "tape" more closely and see where max trading profits will happen - be it on the upside or downside. Clearly, this thing will settle in the peanut gallery when the dust settles, but maybe these funds will not leave any survivors on both sides? glad I have no position.
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Re: Highest percent of float short during financial crisis 32 minutes ago
I agree 100%.
The moves are setting up as if something is up behind the scenes.
The Starr lawsuit being filed on Options Expiration date and not after. This may have pushed more shorts to exercise their put options. This made the Starr's director resignation mandatory before the suit was filed. Also, Starr bought their last shares after the Fall attack on the stock. The stock was still on REG-SHO list.
If Deliotte signed off, what would have happened ? The stock probably will be lower than it is now. The audit would have been attacked as meaningness at best and you can go from there.
If you read the NT-10K, it states that the outside directors on Thursday were tasked to find outside counsel and a forensic auditor. This was not filed until after options expiration.
Also, who probably owns the additional shares assigned ? Is it retail or is it the market makers ? If it is the market makes, what do they expect ?