Replies to post #23837 on China MediaExpress Holdings, Inc. (fka CCME)

[acorisk]

I believe that in the Porsche / VW squeeze, the announcement was made over the weekend.

If the truth is: real company. valid model. $150 million plus in the bank...

then there may be no better strategy than what was done here...
- the drama will get huge media coverage - including coverage of the short bashing / etc if the story plays out on the value side. In order for CCME and others to prosper in the U.S. Capital markets - the sentiment of the market has to change.

Announce over the weekend - guidance for earnings, & that the SEC forms will be filed on Wed and open stock Monday morning for trading...

As a long, I'm p.o'd at the shorts and what I perceive as manipulation. If this story plays out as above, CCME will for sure be a hero to the longs for pounding and pounding hard, the shorts.

Who knows, but I'm glad we've all placed our bets -- making this a long weekend - no matter what side of the bet/deal you sit.

[martych]

Good stuff. I reconciled myself to the fact that this situation is one that no investor could have been prepared for. 50% short, hit pieces everytime we turn around that are mostly easily refuted. Small cap with limited institutional conviction and waiting for the audit. On and on it goes. I won't be surprised if this company turns out to have some small warts. They are a small cap stock with limited history trading on US exchanges and in a market that is pretty undeveloped still. I will be very surprised if we find out somehow that there is fraud as opposed to modest mistakes. Either way, investors that are disciplined will survive. The company probably could have handled this differently but I have a hard time criticizing them. They were blindsided and don't have a wealth of experience dealing with US markets and manipulators such as we've seen. If they are shown to be clean whether a little sloppy or not, I'll have no hard feelings toward them. Frankly the SEC is more to blame than anyone as they sit back and continue to allow this kind of crap to exist which is clearly manipulative and damaging to emerging companies.

[ratobranco]

You bring up a valid point, there is no point being pessimistic now. Might as well be as optimistic as possible, because by the time this stock is tradable again, you will know all the answers. I still think that there were ways to hedge a position this morning though. There are stocks that are riskier than CCME that will be hit hard on a Lehman-type CCME event, no doubt about it.

And some of them are actually quite pricy right now.

Take a look at PUDA, for example. That's an excellent short IMO. They made no effort to upgrade their auditor from the garbage "Moore Stephens", they have done multiple offerings at firesale valuations, I would bet huge money that none of the Chinese filings match, no one has hit them yet, the short interest is growing, and they are at 12.00, 3 times what they were at last year at this time. If CCME tanks, no question PUDA goes lower with the sector IMO.

Another brazen fraud that can be used as a hedge IMO is ZSTN. On CCME fallout, that one goes back to 5.50 no question IMO.

On a separate note, I think we should all just step back and rate CCME as not a "buy", not a "sell", but a "hold." Because that's what people are going to have to do with this name either way at this point, whether long, short, or neutral ;-) Just sit back and wait for news. I think the news will be bad, obviously, but I don't think it will go as low as the shorts do, i.e., RINO prices and so forth. That's nonsense IMO. I say $7-$8 on bad news (i.e., problems with the Deloitte audit), then a rally from there on short covering, provided that the company deals with things properly in terms of explaining what the situation is, holding a CC, and so forth. With such a huge percent of float short, this stock will have support at many levels.

And if the news is good, you will see a gap to $16 or $17 immediately, and who knows what from there.

[olorin00]

When and if,

In the course of human events one chooses to succumb to blatant speculation and propaganda, then find a fact to keep you keep you warm tonight. I cant find one, not one, that changes the avalanche of arguments in the favor of CCME.

I cannot find one post, blog or basher who presents any facts that deflect from what logic and belief tells most of us what is real. If false, so be it, but not because of the grape kool-aid, its due to inane shorts gone wild, naked shorts, with no exigent clue but a hope and a CPU (and tons of payola per word). They have drawn a line in the muddy water, but they have dirty hands,,,,so many lies, so much dirt to blow away.

Its tough but I believe since we are calling their last bluff perhaps the 2000 years of martial strategy they face will prevail....lets not cave to expansive but illegitmate ghosts.
Let them prove one thing, anything.

Meanwhile, I think the PRC has a lot to lose here too, there is so much press they could lose the Public Relations battle for years on this.....so many companies affected. If they can make pre-pubescent Olympic gymnasts into women, perhaps they'll support their own here too.