CCME - I agree that it is a pretty crazy scenario, and I think the assumption obviously has to be against it unless someone provides evidence. But you missed one thing in your analysis. Zheng Cheng received $31MM net from the SPAC. The SPAC consummation through which CCME was created brought in a total of around $47MM of investor money, the majority of which came from warrant exercise. Per the agreement, $31MM of that money ended up going directly to Zheng Cheng, the rest went to the company.
Up until now, all that Deloitte has officially audited is $57MM, the amount at year end 2009. So the question is, can Zheng Cheng turn $31MM, plus whatever else he had in the company, into $57MM using credit facilities and so forth?
We'll know for sure when we get the audited 10-K, because if there is fraud, he will have to fake a huge amount of cash this time around. I think the 10-K will go through, and that the company will be vindicated, but I am currently on the sidelines, as I prefer to wait until it is released, even though I will surely have to give up some of the upside.
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