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Who writes the check? The company or Cheng? Can the company spend the money without the CEO's consent ?
If I may, I council patience. It takes time to set this things up. First off, nobody is standing by on March 11 to start the engagement. Now the train has started (it may have started for a while but we have been kept in dark), expect it pick up speed and deliver.
I think NASDAQ is as impatient as most of us are, and that is a good thing.
Eyedoc, I am not as optimistic as you are, but heck, no, I will not take a $8 per share. If CCME is half as real as they are, they worth more than $20 per share.
One need also consider the fact that if they are only half as real as they are, all the earn-out from 2010 should be taken back and no more such shares for 2011 and 2012. So as retailer investors, we are probably better off if the company has not been doing as good as advertised. Less shares is good for my shares.
For now, we only need the truth and no more. Today's news is a turning point for me personally as it restored my confidence in the management. In the end, we can only be redeemed by the truth.
On the other hand, this is good news as investors at least see a CHANCE to have the business accessed by a independent third party.
I hear what you are saying, I will postpone the party till a later day.
Amy, May I suggest you have a conversation with Luo Ping on the nature and extend of here due diligence.
I post this at YMB and thought it worth sharing here:
I SPECULATE Kung resigned to buy more time for the company. Apparently the company attempted to ask for "time to cure" and was denied recently.
Someone told me Marco Kung is Lin Brothers' man and it is hard to believe he would resign if it does not benefit the management.
Someone cited Art of War at play here. Now I see some truth in the statement.
My take is that they ask for more time to "cure" than normal because Marco Kung resigned, and Nasdaq said "no". So they said "Ok, Ok, we will hurry up to hire a new director then".
I see Nussbaum behind the appealing for more time.
Serpako, Can you handle the chopsticks? Do you mean the action on Nasdaq guys, short sellers, or CCME management?
CCMEshareholder...a couple of days I tried to rally some support to bring the CEO to our side (the good guys, the shareholders) and there was not much of a response.
Further back, I suggested we go to CCME and visit the company and write about what we saw. That initiative also died eventually. I think most of us are read to accept whatever come out of the long and dark tube.
On the other hand, I think the Mitchell and the CEO prefer to fight the battle on their own, giving the fact that now everyone is suing everyone else. The trade is halted, they have plenty of people to give them ideas on how to fight. They do not really need us.
If anything, I see Mitchell from his article that he was willing to call the regulators to pay attention to our side of the coin. Given his status in the China IPO market, he may get some audience, but he may not.
As a lawyer, he will have to put a positive spin on the matters associated with client, even though things are not as rosy as he described. So we know it is a "not guilty" plea. It is not the verdict yet.
Overall, it is a little bit comforting to know that if CCME is not paying enough to hire a top-notch auditor team, at least it is paying good money for the lawyer. That is good, spend the money, so we know we had the money...
Want to see how Mitchell Nussbaum look alike? Watch a video:
http://www.loeb.com/News/details.aspx?news=765
You need to click on the video link and a file will be downloaded to you computer. Then you can click on the file to play with your favorite player. Mitchell appeared at the end of the program.
Koufax, Good finding. Where did you find it?
It is true that you can buy basically everything in China, however, I checked into the credit rating company's website and realized that it is must generate very little revenue if that is the case.
Can we do something to bring the CEO to the bright side?
Resignations, lawsuits, Regulatory actions, and death threats, all are factors could drive the CEO crazy and you know what happens when people go crazy -- they go to the dark side.
On the other hand, this is a guy who built the business from ground up since 2003 and brought the company to public two years ago. Quite an achievement in my opinion. Alright, there are a number of defects, even fatal defects as he moved his way around.
The the bottom line is that there is a underlying business behind the paper we traded until the halt. It could be a very profitable business as the overhead cost is really low and revenue charged by the market players are really high.
Mr. Cheng does not want to go jail and he does not want make his shares worthless. He should be our ally rather than our enemy.
We the longs, holders of more than 1.6 million among the people who signed on the previous letter, should strive to bring out the truth of the market, and to bring the CEO to the bright side.
The war is far from over. We should not resign to the fate and sit here passively.
My questions is: what can we do? Any ideas? I mean ideas beyond the ones we sent to Mr. Cheng in our previous letter.
How to make your shares not borrowable? There is a concerted effort on the hong's side to protect our interest. One of the ways, as many posts suggested on this board and YMB, is to move the shares to an cash account. I was doing just that this morning with Fidelity.
Another way I heard is to put a Good Till Cancel sell order on the shares.
But there is something else the representative told and I would like to share with all of you (longs, of course, shorts would like me to just shut up): if you have the shares in a margin account, as long as you do not have a margin balance, meaning you have not borrowed any money from Fidelity, all your shares are not borrowable by the other people either. As of today, my shares are not borrowable.
So Getting rid in your account of any margin balance is yet another way to keep your shares to your own.
Amy, Like your positive attitude. You left me a PM but I cannot respond -- good portion of my money is tied to Mr. Cheng Zheng's company. You can leave me an email in my PM so I can write to you. Sorry for the inconvenience.
If this thing goes under, there are a number of Chinese phrases I can think of to describe the situation.
Bottom line: My rides on the buses told me that there is a viable business behind the controversial. Why the management could not be honest and clean up the books is totally beyond me. I do not see other ways around for Mr. Cheng.
You should go to the HQ and see if you can meet the executives of the company.
If they filed before March 31, why there was no mentioning in the April 4 press release?
Not filing 10-k was the only reason cited by NASDAQ?
Is this all part of the management/lawyer's strategy?
Read the following new release from the company:
March 21, 2011
FUJIAN, China, March 21, 2011 /PRNewswire-Asia/ -- China MediaExpress Holdings, Inc. (Nasdaq:CCME - News) ("CME" or "Company"), China's largest television advertising operator on inter-city and airport express buses, reported today that the NASDAQ Stock Market ("NASDAQ") has sent a letter to the Company to the effect that as a result the Company's recent announcement regarding the resignation of its independent registered public accounting firm and the resulting delay in the filing of its Annual Report on Form 10-K, NASDAQ was exercising its discretionary authority under Listing Rule 5101 to require the Company to submit a plan of compliance regarding the filing of its Form 10-K not later than March 31, 2011. The Company intends to comply with NASDAQ's requirements on or before the deadline set forth above.
FUJIAN, China, April 4, 2011 /PRNewswire-Asia/ -- China MediaExpress Holdings, Inc. (NASDAQ:CCME - News) ("CME" or "Company"), China's largest television advertising operator on inter-city and airport express buses, reported today that the NASDAQ Stock Market ("NASDAQ") has sent a letter to the Company to the effect that NASDAQ was exercising its discretionary authority under Listing Rule 5101 to suspend the Company's common stock from trading on NASDAQ effective opening of business on April 12, 2011, subject to the Company's right to appeal such determination to a hearing panel not later than April 8, 2011. The Company intends to appeal NASDAQ's determination before such deadline.
On April 4, 2011, China MediaExpress Holdings, Inc. (NASDA: CCME) (the "Company" or "CCME"), issued a press release, attached to this Current Report on Form 8-K as Exhibit 99.1, reporting that the Company received a letter on April 1, 2011 from The NASDAQ Stock Market indicating that it failed to satisfy the listing standard specified in NASDAQ Rule 5205(e) and, as such, its securities are therefore subject to being delisted from NASDAQ. Specifically, the Company has failed to file its Annual Report on Form 10-K with the Securities and Exchange Commission on a timely basis. The Company has appealed this determination and requested a hearing before a NASDAQ hearing panel. There can be no assurance CCME's request for continued listing will be granted.
I received this response from Inside Nasdaq:
Thank you for your mail.
Your concerns have been forwarded to the applicable Staff in Listing Qualifications.
Sincerely,
Webmaster, insidenasdaq
From: xxx@xxx.xxx (my email address)
Sent: Thursday, March 31, 2011 5:57 PM
To: Inside Nasdaq
Cc: Enf-Search@sec.gov
Subject:
To: insidenasdaq@nasdaqomx.com
Copy: Enf-Search@sec.gov
Subject: Regarding China Media Express 10K Reporting Compliance and Listing
Dear Sirs,
In regard to China Media Express (CCME). Firstly, I will assume that CCME has submitted a plan for compliance regarding its 10K fling with NASDAQ.
The situation for us retail investors find ourselves in can be wee summarized by the lawsuit initiated by Starr Investments against CCME, see here - msnbcmedia.msn.com/i/CNBC/Section...
We knew of the company's filings, we knew of DTT (Deloitte) as the auditor being onboard for over a year, and auditing and signing off on the 2009 10K.
Most investors were blind-sided by the short attacks. None off us are privy to the emails sent to Deloitte (as detailed in the suit) from various hedge funds and "analysts". It is as if they had inside or ill-gotten information and were directing DTT to investigate these issues.
Shorts, hedge funds, analysts, major investors aside the retail investor relies on the thin hope of transparency and access to public information via corporate and SEC filings. We continue to see the ongoing scandals of insider trading and conflicts on interest - and we can all assume this a small fraction of what really transpires. Heck, in most of these bear raids they don't even need to be right, they win and trade on fear. It's a nice racket when you have that kind of clout! Sometimes it seems that the market is clearly stacked against the retail investor without clout and without inside or ill-gotten information.
So all I am asking is that if CCME submits a reasonable plan for filing its 10K that you allow for them to remain listed and halted until ALL can review the subsequent 10K. Otherwise, a delisting would just be further damage to investors that have already been severely damaged. I just want the facts of an audit and audited 10K to be available to the general public.
Thanks for your time and consideration in this matter.
Sincerely,
xxx (my name)
No, I think the company is run by a group of liars who has no human decency left in them at all. I think no big-4 will be willing to touch them. CCME is done.
Unless their hired another big-4, they are lying. Even if they did, they should have said: our books was audited by a big-4, but that firm resigned, so we hired a new one.
That is how I was going to say if I were the CEO.
From NASDAQ website:
https://listingcenter.nasdaqomx.com/Show_Doc.aspx?File=FAQsDiscAuth.html
Discretionary Authority
This section discusses NASDAQ's discretionary authority with respect to initial and continued listing.
Does NASDAQ have the authority to delist a company that otherwise meets the quantitative and qualitative criteria for initial or continued listing?
Yes. As set forth in Listing Rule 5101 and IM-5101-1, in addition to applying the enumerated criteria set forth in Rules 5300, 5400, 5500 and 5700, NASDAQ will exercise broad discretionary authority over the initial and continued inclusion of securities in NASDAQ in order to maintain the quality of and public confidence in its market. (Updated: July 14, 2009)
Are there any particular circumstances under which NASDAQ will apply additional and more stringent criteria, and suspend and/or delist a company's securities, pursuant to its discretionary authority?
Yes. As set forth in Listing Rule 5101 and IM-5101-1, NASDAQ may determine to suspend or terminate a listing if: a company files for bankruptcy protection; a company's independent auditors issue a disclaimer opinion on the financial statements that are required to be certified; or NASDAQ deems it necessary to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, or to protect investors and the public interest. NASDAQ may deny initial or continued listing to a company when an individual with a history of regulatory misconduct is associated with the company. Such individuals are typically an officer, director, substantial security holder or consultant to the company. In addition, NASDAQ may determine to suspend or terminate a listing if a company fails to submit requested information, or makes any communication to NASDAQ containing a material misrepresentation or omits material information necessary to make a communication to NASDAQ not misleading. (Updated: July 14, 2009)
Andrew, you are full of humor. You know, in China, unlike it here, you can specify what GENDER you are looking for in a candidate for a job. I think if you advertise even a secretary job in the US and specifically ask for a female (or male), you are breaking the law.
But thinks for the laugh.
Eric.
I was on a business trip for a few other things. I attended a CCR conference called China IPO bootcamp on March 9 in Shanghai. Mitchell was a panelist. I exchange a few comments with him. Fate has it, I did mention CCME and asked what he thought about the short attacks and the bloggers.
I had no idea he is the leading person in Loeb & Loeb so I asked the question in the public.
His answer was "I can't comment on that", very firmly. That was all.
My DD with CCME was strictly a byproduct of my travel. I did not try to be I did not go to the company's HQ. Maybe I should and I thought of going after the halt. But then I was a couple of hours away frommy flight back to the US. At the time, I only knew it was halted and nothing else.
Fate has it, I was so close to the source of information and here I am stuck with a handful of unreadable stocks.
But I do not think all are lost. There is value in the company. It is not a complete fraud as in an empty shell.
You know it was funny I saw Mitchell On March 9 during an CCR organized China IPO conference. I actually talked to him briefly. I did not know he is the guy handling CCME case.
Very tight lipped guy.
For the record I was at Beijing Airport at 1:15AM watching CCME installed bus picking up passengers on Match 15, local time. The bus was full so it had to leave people behind for the next bus.
That was part of my DD. Just want you to know that the trip can be done, it is not that hard.
In the Martch trip, I took bus rides in Beijing, Changsha, and Guangzhou airport.
All Ccme buses.
An hour later in Beijing, I checked in and saw CCME was halted in the US
I have to say that was one of the most dramatic nights in my life.
I still carry a multiple entry visa and can go on short notice. But I would not want go unless there is a group and a company's agreement to see us.
WCTBill can certainly go alone, or he can join us too. I don't think WCT likes the management that much more. The feeling could be reciprocal.
The stock price is a function of confidence. I am sure Mr. Cheng understands that. We are his best ally if he wants to fend off the shorts -- if that is still on his agenda.
I welcome your feedback.
China Agritech doesn't have quiet period?
2 to 3 months without news from the company is too long.
Many of us have hundreds of thousands dollars tied to this one stock. I feel like to go on my own expenses. But I feel more significant if we go together. I speak.the language and have been to Fuzhou a number of times, so I can go around China by myself. Do we have enough people who are willing to go?
I think the retailer investors should bound together and send and delegation to visit the company. We can come back and write about what we see. What do you think?
As a long, life is not easy, but imagine this guy: http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=ts&bn=101061&tid=103264&mid=103358&tof=1&rt=2&frt=2&off=1
Day traders too? Now that is sadly funny.
Upwardmo, very logical, generous and kind assessment. I could not agree more.
Call the fidelity. They told it is an erroneous trade and the trade is back out. They will still show the price at which it was halted at "when the system flushes out".
Good, it gives me an opportunity to assess the damage.
One more year of hard work.
-- Eric
Don't worry. I too, am going to lose money on this thing. So we are weeping together.
If what I said on this board has entertainment value, laugh all you can and laugh all the way. I just felt silly when all of sudden everyone is "LOL" on me and I did not know what was going on.
All are cool now. You guys are awesome.
Sorry, it was a typo. If you find it funny, enjoy it, over the the grief on the money lost in CCME investment. I certainly did not mean to entertain you.
I am alien living in a foreign land, don't quite get the joke.
I repost this at the request of someone in YMB. Yes, I did send in mine. Do as you wish.
To: insidenasdaq@nasdaqomx.com
Copy: Enf-Search@sec.gov
Subject: Regarding China Media Express 10K Reporting Compliance and Listing
Dear Sirs,
In regard to China Media Express (CCME). Firstly, I will assume that CCME has submitted a plan for compliance regarding its 10K fling with NASDAQ.
The situation for us retail investors find ourselves in can be wee summarized by the lawsuit initiated by Starr Investments against CCME, see here - http://msnbcmedia.msn.com/i/CNBC/Section...
We knew of the company's filings, we knew of DTT (Deloitte) as the auditor being onboard for over a year, and auditing and signing off on the 2009 10K.
Most investors were blind-sided by the short attacks. None off us are privy to the emails sent to Deloitte (as detailed in the suit) from various hedge funds and "analysts". It is as if they had inside or ill-gotten information and were directing DTT to investigate these issues.
Shorts, hedge funds,analysts, major investors aside the retail investor relies on the thin hope of transparency and access to public information via corporate and SEC filings. We continue to see the ongoing scandals of insider trading and conflicts on interest - and we can all assume this a small fraction of what really transpires. Heck, in most of these bear raids they don't even need to be right, they win and trade on fear. It's a nice racket when you have that kind of clout! Sometimes it seems that the market is clearly stacked against the retail investor without clout and without inside or ill-gotten information.
So all I am asking is that if CCME submits a reasonable plan for filing its 10K that you allow for them to remain listed and halted until ALL can review the subsequent 10K. Otherwise, a delisting would just be further damage to investors that have already been severely damaged. I just want the facts of an audit and audited 10K to be available to the general public.
Thanks for your time and consideration in this matter.
Sincerely,
(provide full name and phone contact)
* feel free to add/edit at will
** please posut on I-Hub
*** email now
ValueInvestorToday2,
I watched that video you cited, with MW "analyst" talking to a poor sales rep of CCME. If you understood Chinese, you would not have drawn the same conclusion as you just did now. Essentially, the sales rep. did not admit the company double the bus number in the SEC filing. What she said was:"for example... the company COULD...". Honestly the sales rep. does not know what SEC is and her words were misinterpreted by the MW guy on purpose.
I do not count to 55 based on the list your provided. Even if I do, these are ad. on two different websites and there are quite a bit of if not all,overlapping, between them. So there is a factor of two.
In the fast growing market in China, people hop jobs a lot, especially the lower level jobs. When one person leaves, naturally you want to hire another one to replace that person.
Dorothy and Jacky are from HK, I doubt their resignation will be even felt by the local staff. And they may not have any friends among the local staff either, so do not expect to see an exodus due to sympathy. There will be none.
Local staff do not care about DTT and board room fight, they care about whether the next month's paycheck is there.
The company could be indeed growing and need the extra staff. I do not think the company has energy to continue to trick us investors any more. What is the point? the trade is halted, we are all prisoners, long and short.
The company either are going to file a plan to comply before March 31, or not. They either are going to hire forensic auditor, or not. They either are going to hire a CFO, or not. Posting multiple local positions is irrelevant at this point. At least for me, that is the case.
The resignation of DTT, Lam and Dong made us all a bit cynical towards the company. Now even some simple job ads are scrutinized as to their true meaning.
If you ask me, the company could still be a fraud. But the CEO is showing up at a Fortune panel discussion, and the company is still hiring. So there is hope.
No sure if we have the ears of the CEO, but what I see in this YMB makes sense to me:
What we really need is for the SEC to investigate the entire situation. That will force the truth out of whatever is going on once for all.
The more entities we have going after the truth in whatever form that takes the better.
I know some would think an SEC investigation would be bad. I don't think so at all. I think it would help force the truth from the potential fraud, the short position and how that took form and whatever else we can find.
Not sure what it would take to get the SEC to step in but sure would like to see that happen.
I found something interesting in the latest job ads. CCME placed. They are hiring CFOs in Fuzhou and Bejing. Could it be that they are inflating the title of local financial manager to the title of "CFO"? In that case, it may make sense for them to advertise the positions in local website.
You are right, mostly the fraud was against the local Chinese people, and I do not wish CCME becomes the first case in which CEO get executed for cheating against the US investors.
I am not an expert in relevant Chinese laws.
The company involved was traded in the US under symbol CYXI.PK.
As a matter of fact, it is still being traded:
http://finance.yahoo.com/q?s=CYXI.PK&ql=0