Replies to post #17045 on China MediaExpress Holdings, Inc. (fka CCME)

[bullmarkets]

I doubt a halt for 2-4 weeks would have any affect whatsoever on operations or be any cause for consternation on advertising partners. Media buyers and marketing people at companies just wont care as long as operations are business as usual to fulfill ad contracts. No one cancelled residential or business service when Worldcom went bankrupt. So what media buyer would care if there's a four week halt of a stock trading for a bus company in China?

The halt under discussion is of a security and underlying derivatives traded on NASDAQ, not of CCME's obligations.

Were there a halt, the reasons would be explained to those in privity of contract with CCME, if they even cared to ask about it, which they would not. If some media buyer or ad staff at a company did somehow care about CCME stock, they'd already know why there's a halt and probably be very thankful.

All the above notwithstanding, I predict no halt and an audit completed on time.

-Andrew

[martych]

what's interesting is that the SAIC filing of Fujian Fenzhong Media co should be irrelevant to CCME. CCME doesn't own nor control the entity. My understanding is that CCME only gets the economic benefit of their contracts. So I don't really know what impact this press about CCME has toward Fujian Media but that impact is not particularly relevant to anyone other than those owners.

[chensiona]

Ah so you see the beauty of a stock halt:)

The panic, which would result in nothing happening because no one would be able to dump out of fear due to the stock halt, would eventually subside and give way to the hard cold facts one of which would be the short squeeze once trading resumes, after the 10K is released.

Once the stock is halted it doesn't matter what the shorts or anyone else says. People will have time to compare all the facts with a cool state of mind. People will realize who is telling the truth and once the stock opened it would be game, set, match.

With regards to advertising partners, I don't think it would affect their relationship in the slightest. They are audited by the CTR and the advertisers no doubt trust the audit. Not to mention their advertising partners probably aren't even paying attention.

IMO a stock halt is their best line of defense, but I know its more wishful thinking than anything else.