CCME's underperformance is due to the lack of institutional
support imo.
I believe that the institutions don't want to be long this stock
due to the Starr investment that will give Starr a huge % of the
float after the warrants and preferred are converted.
Think about it, how bad did institutions, and tax payers, get burned by AIG's Greenberg's (who controls Starr) greedy, risky,
and irresponsible actions. Investments in AIG may have resulted
in the largest losses many institutions have ever incurred on a single investment.
Why did CCME dilute itself when they didn't need the money?
My theory is that the government had a hand in this. Greenberg
has been an influential player in China for years. I don't doubt
for a second that he participated in the Chinese under the table
method of doing business. I'm speculating that government officals
may have returned favors they received by pressuring CCME into
the senseless dilution. CCME was granted their moat from
government officals who definately have CCME under their thumb!
I was long until a month ago. I have no position now.
