A summary of the GH story finally just popped up on my Schwab news feed; that should help!!<g>
The headline says "Investors Rush in to China Media Express (CCME) Following Analyst Due Diligence".
The story on the Schwab newsfeed says:
China MediaExpress (Nasdaq: CCME) shares are ripping up the charts today, following a report by Global Hunter Securities which gave an updated due diligence report on the firm. GHS says that they visited CCME, and:Physically viewed contracts with bus operators, confirmed advertiser partnerships, tax filings, and bank statements over the last three years; Their short interest is 49% of float; and They reiterated their Buy rating and price target of $26. GHS also noted "we contacted the top eight bus operators (by number of buses) mentioned in some bloggers reports. Specifically, we visited Shanghai Ba-shi Public Transportation (Group) Co., Ltd, which a blogger said CCME does not have a relationship with. The manager we met there said they have 1,892 buses engaged with CCME (matched CCME s contract); the monthly concession fee is RMB1000 per bus and they started the 5-year contract in January 2008. Tianjin Long Distance confirmed they have 1,270 buses engaged with CCME, Beijing Yinjian confirmed they have 860 buses engaged with CCME, Beijing Xianglong A-er-sha confirmed they have 430 buses engaged with CCME, Changzhou Highway confirmed they have 500 buses engaged with CCME, Beijing A-er-sha confirmed they have 207 buses engaged with CCME, Tianjin Jinyu confirmed they have 117 buses engaged with CCME. We do not see any meaningful discrepancy between these numbers provided directly by the bus operators and those claimed by CCME.
Investors may recall that a sour note from Citron Research and allegations made by Muddy Waters have depressed the stock over the last month, from highs in the mid-$20s to a low near $10 per share. The stock is beginning to make it back to the upper-mid-teens price level that it traded at prior to all of the news.
Shares are up 18.9% today.
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