Replies to post #71934 on China Growth Stocks

[Drexion2004]

CCME: Rato, your like a guard dog chewing a bone! (chuckle).

We get your viewpoint here, it applies to 99.9% of the companies in our space. Some people are willing to accept it, some are not. It seems you are not and thus you are no longer a shareholder. Thats fine and reasonable. Can we move on now?

This is NOT the time to be focusing on these side issues frankly, not when all hell is breathing down the neck of the company. All the stuff you are saying has been true all year long and we didn't seem to care about it then.

Let us not throw gasoline into a fire, let us focus on the short attack inaccuracies for now. Once we have discarded all the silly attacks and see what remains unrefuted, then we can try to complete a "big picture" by taking all these things into account.

All these things about going public and evaluation in 2009 mean nothing in relation to a short saying they pay no taxes, to a short saying they have half the buses they do, to a short saying they lie about clients and profits.

So lets put it on the backburner for now while we deal with the important stuff, alright?

-Fernando

[nole92]

I think it's foolish to compare these companies to ours (western). Think about it, how many independent Chinese companies were there 20 years ago?

They are easy targets now, no doubt. It doesn't make them bad.

I should have finished...

China is learning and to accuse them of a bad deal to get traded on a US exchange might be the wrong call.

[DLouis]

Rato you are hilarious to be dissing the entrepreneurial judgment of CCME's founder
How much are you worth yourself?
I know you're young, but you're not *that* much younger than CCME's founder

[abh3vt]

As for the argument that they overestimated their capex needs, what did they think those capex needs were going to be?

Rato, you forgot about this stated capex need in the early filings for CCME:

Based on current estimates, CME expects its capital expenditures in the future to primarily consist of:


•  approximately $1,000 on equipment and a control system for each bus added to its network as it expands its geographic coverage and increases the number of inter-city express buses within its network; and

•  approximately $150,000 per bus station and less than $100 per bus to upgrade CME’s technological capability to change programs and advertisements from a manual system to local wireless network technology; CME’s expects that the number of bus stations and number of buses that will be upgraded with the wireless network technology will be approximately 255 and 31,000, respectively, by the end of 2010.

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They changed their minds about the need for this spending....but it was originally projected to be significant.