Replies to post #27968 on China MediaExpress Holdings, Inc. (fka CCME)

[RedBull77]

So it's a gut feeling based on your limited knowledge? I think the Yahoo board might be a better fit for you.

[bullmarkets]

The word "fraud" is very broad and can also encompass narrowly defined circumstances too.

I'm not saying the outcome will be rosy for shorts or longs. However, the case of CCME is singularly unique to the point of the absurd.

Many experienced investors recognize the efforts by some shorts were manipulation and/or to provide a cover story for shorts acting on inside information.

I'm confident the ultimate result will show that many shorts were in some ways right and many longs were in some ways right; the facts will eventually show that some shorts were knowingly or recklessly wrong about the so-called "facts" they presented, in violation of the Securities Act, while longs were victims in one way or another of this manipulation.

When I say both sides right in some way, I mean that there can be a 10% fraud, maybe balances loaned off for high interest to a non-CCME third party or to enrich the CEO or former CFO privately. Well then that would be "fraud" yet the company is not a fraud at the core. There's many examples that would quality as securities fraud on investors and yet the company is quite healthy.
In light of Dorothy Dong and CFO Lam's resignations, even I said CCME is a fraud. But what really is the bare minimum to constitute a fraud? It's one very large array.

-Andrew