Gunnar, your logic is sound, however if you look around at other Chinese small caps, many have been trading at 4-8x earnings for years, despite stellar performance by the companies year in and year out. As much as I wish the market was rational and saw things our way, that clearly isn't happening. It won't happen long term either if certain things relating to credibility don't happen first. You can't do the same thing over and over and expect different results. I am convinced that the company could double their revenues within two years and still be trading at a pultry 8-9x earnings, becuase the market doesn't see them as a truly distinguished, and therefore less risky company.
I am holding my shares because I do believe Jacky will ultimately realize that the only way he is going to make shareholders (and by extension themselves) wealthy is to get investors, and primarily institutional investors, to think of CCME as a truly different and more REPUTABLE company than other Chinese small caps. Reputation is currently paying significantly more than enhanced earnings. It's just that simple.
