Replies to post #26631 on China MediaExpress Holdings, Inc. (fka CCME)

[floridahockeyman]

if the company hypothecated the cash, I would expect our return to be higher, not lower

and how could Lam and DTT not pick up on the hypothecation?

BWTFDIK? Just thankful I have a strong practice to help me ride through this portfolio tsunami...

[Post-it]

"Hypothecating Cash" - very interesting; if done on a wide scale, Chanos may be right after all...

"This would explain DTT's original verification of cash balance and the low reported interest on the cash (the point that has concerned me most of all the shorts points)."

Foregive my ignorance, but would this really lower the interest earned? I mean the money is there and stays in an account in the same bank, but it can just not be freely used anymore.

Or have I misunderstood?