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Right now CCME.PK trades at $0.16 with comparative large volume. It is not 0 yet. Is there any possibility that your conclusion is wrong?
Here is WUYI company web page:
http://www.todayir.com/demo/wuyi/html/index.php
Key accusations by Muddy Waters are wrong.
From a news.
...
In response to reports by Muddy Waters and two other short sellers about China MediaExpress Holdings Inc. (CCME:$1.9000,$0.0500,2.70%) , its chief executive in February issued a statement "categorically" denying what he called "reckless and baseless attacks." A spokesman for MediaExpress told The Wall Street Journal that an independent investigation currently underway at the company would prove that key accusations by Muddy Waters are wrong.
CHINA MEDIAEXPRESS HOLDINGS, INC. Financials EDGAR Online Financials(Wed 1:04PM EDT)
http://finance.yahoo.com/q/is?s=CCME.PK
Is this new? Does this mean they confirm 2009 earnings? Will company provide PR soon?
"illegal fund-raising", if the amount is huge and it causes a lot people lose money (like Madoff scandal in here), the penalty will be death in China. There were a few death penalty cases like this in China in last few year. But Starr CCME case is different from that. Cheng did not do "illegal fund-raising". CCME raised fund with the help of brokerage and was allowed or approved by SEC.
The Starr lawsuit is for financial damage and it is not a criminal case. If so, I don't know if Cheng would be scared to death even if he would lose the case. CCME is a shell company. He could say, "that is all, you can have all of it."
The only winners are shorts.
It depends on what kind of news that will be. If it is a good news, such as completion of forensic audit, insider buy, and such, the price could be tripled in few days at this level. I don't trust ccme management at all, especially don't trust what Zheng says, unless they take actions. If on bad news again, such as auditor resignation, going dark, it will be under $1 for sure.
Rebound from today.
Buyout is not likely to happen. If it would happen, in this case, the short would lose 11 - 9 = $2, or 2/9 = 22.2%, if he/she could cover at $11.
Figure reward and risk ratio at this price level. Lose it all or gain few folds. Any positive news could easily double the PPS. But just don't know when that news will come out from Zheng's mouth, it may never has one if Zheng planed to destroy all shareholders (go dark or claim bankruptcy of the shell company and he keeps all assets of Fujian Fenzhong, seems not likely at the moment).
Old news. What has SEC been doing? They opened the door for the RTO and IPO from other countries. Do they care about US investors' money? I don't think so.
these shorts will cover their positions and disappear, or turn into longs.
Totally agree with you. Shorts are organized very well. This has been revealed by some articles.
These remaining shorts on ccme are greedy ones, and are still spreading fears, trying to make maximum panic, and to push ccme to under $1. If this would go under $1 next week (but I doubt), these shorts will cover their positions.
I guess CCME shorts are still floating around, spread fears, and want to push this under $1. Also, volumes tell that some shorts are still hanging on this and want to maximize their gain. So, these shorts are more greedy than others. Covered shorts don't care about if the company is legit or not. They took the profit and move to next targets.
I believed many shorts (research firms, hedge funds...) worked very hard to convince and push NASDAQ to delist the company ASAP. They are very well organized and work as a team. They have stolen billions of dollars from investors and put many companies into trouble and bankruptcy.
This may also be Zheng's plan to let it to be delisted, since we have not seen any evidences that ccme provided to NASDAQ to convince it that ccme would satisfy or meet NASDAQ requests. All it said in 8k were "the company intend to ...", then nothing else.
For PK and OTC stocks, they move very fast. They (e.g. lexg, jamn, pspw...) can gain 100+% within a day. So, everything is still possible.
Most people dumped thought ccme was done, they just wanted to get out and forget it. The street has saying "buy when everybody sells". This could be a good buy at this level when you look back after a week or two.
Seems no interested buyers. Volume started to dry out. Volume is lower than that on the day when MW hit piece was released.
Now, the company could buy all its floating shares for $30M. What do you guess Cheng will do?
FUJIAN, China, May 19, 2011 /PRNewswire-Asia/ -- China MediaExpress Holdings, Inc. (CCME:$11.8799,$0.0000,0.00%) ("CME" or the "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 indicating that it denied the request of the Company for continued listing on Nasdaq, and will suspend trading of the Company's shares effective at the open of business on Thursday, May 19, 2011. The Company intends to further appeal the hearing panel's determination.
Counterfeiting Stock - very informative article about short attacks
Found this from YMB. The article describes how short attacks are organized, and it is very similar to what happened to CCME. Very informative on "what is REALLY happening in these hit pieces and short attacks, including a list of all the dirty players involved." This kind of short attacks are organized crimes.
Yes. Buyout or going private seems to be the only solution now and it will solve all problems in once.
I believed they hired a senor accountant (Google translates to Host Accountant) for Fuzhou's position very quickly. That ad was posted in the same site and removed few days late. I also guessed CFO has been seating in his office few weeks by now.
For sure, it will be negative. Do you think that top level people and DTT resignations were for good findings?
Everyone our retail investors depended on and who supported or was on the side of CCME has abandoned the ship or wanted to destroy it. What has really happened? Things seem to get worse and worse. Hope this is worst and company is going to provide some positive new from now on.
That's a good question. Why didn't wctbill checked with his government friend before to find out the company was fraud, which would be much easier for him to do than on-ground works to support that the company was legit? I just don't understand it.