Replies to post #71804 on China Growth Stocks

[value1008]

CCME-- yes, yes, it's all about the cash. And the earnings.
Quarter by quarter CCME will prove itself with audited/reviewed/analyzed healthy financials.

Thus far everything looks terrific. It's why both Global Hunter and Northland leapt to CCME's defense last Tues with the reiterated "Must Buy" ratings and Northland reiterated CCME as top pick.

Shorts are avoiding and distracting away from all the essential strengths of why so many people here at CGS first made CCME the top pick (by far) these last 4 quarters here. We've also seen that the shorts have no qualms about bald lying (e.g., bus numbers) and wrongful omission of facts (e.g., that CCME is "unknown to its peers") to make CCME seem much weaker.

[soulstealer]

ccme- another question to add Rato:
Why would the company hire MS to advise them on buyback and dividend? For sure, MS probably not the cheapest to hire right?

[Rames]

CCME - I've been discussing this issue with GH on Friday and today. Their senior analyst went back to visit the company yesterday to do some more due diligence, I believe we can trust her, I have no reason to think otherwise. She's be looking to verify as many advertisers and bus operators as she can.

I asked them to relay the following to Ping. We need the 2009 and 2010 tax filings for both PRC entities, from the company and (with CCME's permission) directly from the SAT office. It should be possible if CCME plays along. I don't see any other way to be sure that SAT filings floating around are the real thing. If taxes paid in 2009 and 2010 match the 2009 10-K and the 2010 guidance, there is no point anymore in talking down the size of CCME's operations.

I also asked them to get some more clarity about Deloitte's audit procedures. I already know that DTT wants to add a few more procedures for the 2010 audit, but I would like to get some details about the methods used to verify especially cash balance, but also revenues and taxes paid. If that comes out well there should be no more reasonable doubt about the cash balance.

Now if we would have both these things verified, taxes paid and cash balance, there isn't much left. But the third thing I asked her to verify is the media buyer for Coca Cola, as Rato is right when he said that this part of MW's allegations was not covered in CCME's response. Should be the easiest of the three, as Ping is down there at the moment.

If I get back a green light on #1 and #2, there will be little room to question the financial statements in the upcoming 10-K (which will make the current share price look ridiculously cheap), and the stock should be a clear buy at current levels. But I'd rather want those green lights before I jump back in. Deloitte will be very aware of the current drama with four seemingly independent (yeah, lol) short attacks within one week. They won't sign off on the 2010 numbers lightly, I'd expect.