Tootalljones: My perspective is a bit different. I've been in several different CGS stocks and I am well aware that ANY stock can be attacked. In particular, the hard-to-understand business model of CCME's advertising margins made me skeptical way back last summer. But over the course of the fall and winter I read a lot of good due diligence on CCME and was impressed with what I saw. However, I still didn't make a first buy in the high teens/low 20s because I had a hunch that Mr. Market could create selling pressure in the event of either negative macro sentiment or a short attack on CCME, even given that this stock is in the cream of the crop as far as well-vetted China stocks.
Therefore, I made a first buy AFTER the short attacks had brought down the price, since at that point short term AND long term risk-reward both looked favorable and pretty safe. As far as those who bought high well before the short attacks, they need to remember that investing horizons will always vary, and you haven't lost money until you sell. Therefore, almost all short attacks that are completely lacking in substance and which are successfully refuted will have waning residual effects that do not last for much more than a few weeks to a couple months. A very undervalued stock with a solid reputation like CCME will eventually recover and surpass previous highs if it is truly solid and has growing earnings without excess dilution.
However, that notwithstanding, there will always be a "risk-premium" built into the valuation assigned by the market for US-listed China stocks, so you really cannot ever expect P/E to fully approach that of many of the typical comparable US companies. JMHO. GLTA.
