Replies to post #27446 on China MediaExpress Holdings, Inc. (fka CCME)

[ValueInvestorToday]

I can tell you how I avoided losing money with this company and I didn't have to go to China or read a research paper from a firm to do it. Matter of fact, I came to my own conclusion before any research paper was put out by Citron or Muddy Waters. I found a number of things I didn't like but one in particular was a decision maker for me. On January 12, 2010, Starr entered into a contract with the company that allowed them to purchase shares of stock at a cost of $6.47 per share. On that particular day the agreement was signed, CCME was trading for $10.64 per share.

Would you go to a clothing store. See a shirt you like. Stand in line at the checkout counter. You notice the gentleman in front of you is purchasing the exact same shirt you are. The salesman sells the same shirt to him for $6.47 and when you get to the counter to pay for your shirt, you're charged $10.64. Would you pay for the shirt or walk away?

I walked away.