Replies to post #28222 on China MediaExpress Holdings, Inc. (fka CCME)

[rru2s]

My ignore list on YMB has about 20 aliases. However, I did not censor Waldo or Donmonfort because, although they always seem to be biased towards the short side on any stock, nevertheless they do sometimes add insight and detail that folks like me with a disability called "confirmation bias" seem to be lacking for this particular stock.

[cfgjr]

If it's halted another 3 months (which I think is unlikely) then it becomes a very expensive trade for the shorts. Let's say someone shorted 10,000 shares at $15/share on 01/01/2011 for a borrow of $150,000. Let's also say that the annual borrow rate was 50% and the shares were borrowed for 6 months. That would be an interest expense of $37,500 or almost 4 bucks a share. They may still make money but it won't be nearly as lucrative as originally hoped for......btw, these are hypothetical numbers here as the borrow rate may be higher or lower, I don't know what the pps was on 01/01/2011, etc.

Given a long halt, their brokers may also initiate forced buy-ins when trading resumes and who knows what the cover price will be. This is especially true if CME gets through a forensic audit resulting ultimately in the filing of a clean 10K. The plot thickens....and, of course, the entire discussion could become moot depending on what happens over the next 24-36 hours.