Replies to post #71580 on China Growth Stocks

[DLouis]

Well put. I hope we're right!
I too have sold stakes in companies I founded to private equity/venture capital shops for tens of millions of dollars.
Rato, you don't seem to understand the terms at which private equity shops invest in CGS-type companies. They generally require a ton of control that founders don't like to give up (see PDG's note) -- and 5X earnings would not be an unusual price, plus they get liquidation preferences over the owners. So your general argument against CGS based on their raising capital at low multiples isn't anywhere near as damaging as you might think. I'm not saying there's nothing to it, but it's off by half an order of magnitude IMO.

[derek2000]

Best post I ever read! Highly recommend.

[RogueBravo]

wow...awesome post...person marked

[joenatural]

Person-marked.

[ratobranco]

Excellent post.

[swampdonkey]

Great post i concur!

[Michael Anderson]

Hate to reiterate, but awesome post. There are definitely going to be many losers, but there are also going to be many winners. There is going to be a lot of negativity until we get to the better side of positivity. You cannot just invest in one of these companies based on fundamentals, it involves many more elements of research and legitimacy. Those reasons are reasons many of the intelligent investors on this board have CCME #1, not just because it is popular and has great fundamentals, but what else is behind the door. The winners will win big and the losers will fade away, but it is still worth getting into this sector due to the upside. It will be interesting and when the sector turns, it will be after more frauds are shown, strong management, growth, and transparency. Yes, this board and the CCME board as well have many intelligent investors with a lot of quality insight. Good luck.

[viking86]

Great post, person marked. Thanks also for debunking the sterotype of the lying Chinese CEO.

[atco1982]

Agree with this totally -

These RTO firms who are on the top 10 list will need to go to supper human lengths now to show day in and day out that they are not frauds – crazy stuff that firms their size in the US do not need to do

That's why bullmarkets post (below) of his email to Jacky is so on the money. Extrodinary actions, above and beyond a normal company, are required:



Here is the sum and substance of today's e-mail to Jacky:
Jacky:
Happy Chinese New Year.
Please give shareholders like me more tools and support:
1) ***Buy Back Shares.
2) Hire US -Based Ad Firm/PR firm at any expense (film buses, make website phenomenal).
3) Get business partners to acknowledge and praise CCME as a partner.
4) Fire EquityNY and get a new IR Firm.
5) Put all television programming on the Internet including commercials.
6) Translate website perfectly and improve web presence. CCME was attacked online. Online defenses are what's needed.
7) Show how operations work online in demonstration videos.
8) Interviews with passengers and bus drivers, translated put on line.
9) Hire a law firm to sue Muddy Waters and Citron for libel and fraud.
10) Hire a Washington DC Law Firm to Lobby the SEC to investigate.
11) Hire a New York law firm to Lobby the Attorney General of NY Securities Fraud Division to investigate.
12) Hire a top PR firm to publish press that attacks the shorts for defrauding CCME investors with falsehoods and lies.

You have cash, no debt, and earnings. Now you need the perception of legitimacy. Money talks. This will all cost millions of dollars. It's worth hundreds of millions in market cap.

Thank you,
Andrew
Licensed to Practice Law in NY and TX
CCME Shareholder
etc.

[Shengli]

Marked