Replies to post #27450 on China MediaExpress Holdings, Inc. (fka CCME)

[zaudio]

Such seemingly discounted DROs are far from unusual; often the sale price comes form an earlier pps average when the deal was first discussed... like the deal done at 9$ last fall.

[RedBull77]

If that's the case then you won't want to follow Warren Buffett into any trades either, he has a tendency to negotiate favorable terms like that too.

Not saying it's a good thing but it's hardly unprecedented.

[MrMajik55]

Simple logic. Good example and one worth remembering.

[FairviewInvestor]

re: ValueInvestorToday.. I ask this question with genuine interest

When I read your post, makes me want to ask, what you are doing here 1 year and 2 months later... after obviously coming to an investment decision so, very, long, ago?

re: you whole page of last posts on your profile is here on CCME....?

So what's the motivation? What's the Value?


TIA

RE:

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.