China MediaExpress Holdings, Inc. (fka CCME)

[gunnar]

This is a great, a short who is supporting CCME in strong terms. He calls out Muddy Citron more effectively than we longs can in a some ways - very cool.

"I find very little difference in the quality of work Citron Research did with CCME and the average penny stock promotion email I get countless times daily. The biggest differences I assume are Citron Research is short CCME and that CCME is traded on NASDAQ."

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"Looking at the work by Muddy Water Research and I find in my opinion the same level of research performed. "

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"Top institutional holders include Goldman Sachs, Ardsley Advisory Partners, Morgan Stanley and Vanguard Group. The amount that institutions are holding is growing as well. It’s possible that CR and MWR are the smartest guys in the room compared to the institutional CCME stock holders but given the choice I am going to place my bet on Goldman Sachs over Citron every time."

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"Saving the best for last we see the mother of all numbers. CCME short interest is a whopping short squeeze nightmare for anyone who is short of 6.44 million shares. With a float of about 10 million shares this means that more than one out of every two shares out there is shorted. Fourth quarter 2010 earnings report is expected to come out next week. If the numbers beat expectations it could kill the shorts as they scramble to get out of the burning inferno that would be cooking them alive. How do you get out of a large short position right before earnings without taking a huge loss? One idea is to issue a “research report” on why you believe the stock is a total fraud. Prices fall and you get out just in the nick of time. There are no coincidences on Wall Street."

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There is much more, he does a point-by-point rebuttal and goes over insider buys as further evidence of a phony 'fraud' story... a great read and an important voice on the short side.

http://seekingalpha.com/article/250957-china-mediaexpress-holdings-investors-crushed-in-rush-for-the-exit