CCME - have you guys read the MW report?
It looks well-documented at first read. Focuses on proving alleged massively overstated revenues (and margins) and number of buses. Additionally some unimportant nonsense about SWITOW/Apple, that is just distracting. No mention of cash balance, insitutional sponsoring or accounting.
The issue with bus screens being turned off or not showing CCME content is nothing new. It's not good but we are all aware of that I believe. The main issue seems to be margins and number of buses. MW's reasoning why CCME's margins (airport buses) were too good to be true is flawed. Just because AMCN used to have a similar business they sold pre-IPO, and that they made far less than $30M revenue, means nothing as AMCN's numbers are from 2006 and earlier when the advertising industry was very different. Can't just ignore all the growth since. The number of buses, that is something CCME will have to respond to. I have no idea who's right or wrong here, it will likely be hard to check into all the various bus operators and get reliable numbers of current buses - for both CCME and outside investigators.
Anyway, if CCME has been entirely honest with US investors then I call for management and big institutional sponsors to aggressively defend the company, their investments and retail investors interests by bringing the authors of this and similarly damaging pieces to court. If even just one third of the MW report is true then I've personally been lied at by several different people repeatedly and for many months.
