I have read the board for a couple of weeks. It is a great board. I just joined the membership yesterday in order to be able to post message. So this is my first post. I want to discuss CCME, the consensus pick of this board.
The fundamental of this stock is very strong, great growing story. But the price is hold back by some mysterious force. Then what is this mysterious force? If somebody is shorting this stock, what the shot is seeing that make him so confident that he will make money?
After reading the 10K, my major concern is the business structure of CCME. I am thinking that this might be reason why short is shorting the stock. From its business description, CCME does not own Fenzhong and does not conduct any business of its own. After its contract with Fenzhong is over, nothing left for CCME shareholders.
Can anybody rebuff this argument? Forgive me if this question is already raised in this board.
Gene_finder
“The Company does not conduct any substantive operations of its own, but conducts it primary business operations through Fujian Fenzhong, a VIE of a wholly owned subsidiary, Fujian Across Express Information Technology Co, Ltd. (Across Express).” And “China MediaExpress Holdings, Inc. (CME), through contractual arrangements with Fujian Fenzhong Media Co., Ltd. (Fujian Fenzhong), operates the television advertising network on inter-city express buses in China.”
