wadegarret re:CCME
I've read most of the rebuttals. CCME was my top pick in BTHB for this year. I've owned it multiple times, but I'm currently not long the stock. I sold CCME on the last run before the short attacks materialized. The fact that I didn't get caught in this down draft is matter of rare luck.
I will share with you my experience of owning other small cap stocks that have come under attack by these organizations.
Much like you, I initially discounted their attacks. Their deceptive tactics and partial truths made it plausible to discredit their efforts. In each case, management would counter every attack in a similar fashion to the response from CCME.
Much like CCME there was considerable volatility in the stock prices, but in the long run the stocks trended lower from the valuation at the time of the attacks. The businesses were legitimate and despite the questionable methods of the shorts, they proved to be correct about the long term valuations.
With that said, I still follow CCME and I haven't ruled out owning the stock again, but I wouldn't be too quick to discount the shorts.
One thing you shouldn't ignore. 6.4M shares of a 10.17m float are short in the face of earnings projections that suggest this stock is ridiculously undervalued.
Shorts aren't stupid. They face far greater risk then longs because there is no cap to their potential losses. Given the incredibly low pe ratio of this stock, it is unrealistic to assume that they are basing such significant short positions on nothing more then the hope of attempting to deceive the investing public.
