China Digital Media Corporation (fka CDGT)

[PaperProphet]

I have a relatively small position but it seems fairly valued at this price. They have some potential but they're also paying for it. I'm going to wait to see what happens before I decide whether or not to take a good position.

What I like about this company is that nobody seems to know anything about the finances. Late last year when the CEO changed the conversion on the preferreds from 200 common/1 preferred to 5 common/1 preferred, the effect on the share price should have been similar to a 10-for-1 reverse split. Instead the share price had barely a blip. I'm guessing the bulk of shareholders didn't even realize the preferreds were there or that they were so dilutive. It makes for a good potential opportunity if shareholders don't follow the fundamentals.