CCME: comments from Gilmo report on weds night below (before release of MW report) while the stock was at approx 17. Obviously from a technical standpoint, he does not like CCME, but interesting to note his thoughts on whether fraud exists based on his own due diligence:
One of the most interesting news-related situations this week was China MediaExpress (CCME), which I discussed in my report of this past weekend. CCME came under fire from a couple of blogs where the company was proclaimed a “fraud” that does not even exist. This of course sent the stock careening to the downside where it finally found some support back at its 50-day moving average. However, as I indicated in my report over the weekend, CCME’s breakout last week came from a flawed cup-with-handle, as was quite evident on the weekly chart included with that discussion. I get emails asking for my opinion on this, but the fact is I
have none. The base breakout was flawed, and I have not reconsidered the stock since then. However, if this news proves to be just so much baloney, then I would simply watch for the stock to set up again, this time with a much sounder handle. This may take a fair bit of time given the technical damage in the stock over the past few days, but the fact that it cannot hold
its 10-week (50-day) moving average here is not a good sign. The bottom line for you to take heed of is that for now this stock is not in play, and it is best simply left alone.
