They just didn't understand that they were given installed #s and not contracted #s
I'm sorry, there is absolutely no way they didn't understand the difference between installed and contracted. They knew exactly the difference and even talked about it in their Analysis. They said installed wasn't significant enough to allow for discrepancy - clearly they understand this area precisely.
Analysis
The representative claimed that the discrepancy between the SEC filings and the buses quoted to us was because
approximately 50% of the buses have not yet had equipment installed; however, this explanation does not hold water. As
we pointed out in our earlier report, one of the major discrepancies is in Shanghai. As of July 2008, the company claimed
to have 2,127 buses belonging to Shanghai-based operators in the network,1 but the materials the sales representative sent
only show 296 Shanghai buses as of January 2011. Thus, the overall discrepancy must be due to more than timing
differences between when CCME signs contracts and when it installs equipment.
IMO, these are smart guys asked to produce a report on a wrong premises (that CCME is a fraud) - however smart they are they aren't smart enough to fill in all the holes in the premise.
rich
