Not sure if you have been following the alleged fraud at China MediaExpress.
Muddy Waters released some serious allegations and recommended shorting the stock here:
http://www.gurufocus.com/news.php?id=121288
Management from CCME subsequently responded:
http://www.gurufocus.com/news.php?id=121485
I signed myself up for Muddy Waters distribution list because I find these alleged US Listed Chinese frauds very interesting to follow.
This afternoon I received this:
Ms. Luo and Mr. Cheng’s documents contain gross misstatements of facts that are material to the investment case in favor of CCME. Muddy Waters, LLC intends to respond to these misstatements with evidence of the inaccuracies within a reasonable time period.
Muddy Waters released some serious allegations and recommended shorting the stock here:
http://www.gurufocus.com/news.php?id=121288
Management from CCME subsequently responded:
http://www.gurufocus.com/news.php?id=121485
I signed myself up for Muddy Waters distribution list because I find these alleged US Listed Chinese frauds very interesting to follow.
This afternoon I received this:
Ms. Luo and Mr. Cheng’s documents contain gross misstatements of facts that are material to the investment case in favor of CCME. Muddy Waters, LLC intends to respond to these misstatements with evidence of the inaccuracies within a reasonable time period.
We reiterate our Strong Sell rating on CCME, and stand by our conclusion that CCME management is significantly inflating its revenue and earnings in order to generate management earn-outs and inflate the stock price so insiders can sell.
We intend to shortly contact CCME’s auditor, Deloitte & Touche LLP, and the enforcement division of the Securities and Exchange Commission with documentation of our work, including evidence that directly contradicts statements in the aforementioned documents. Such evidence will include transcripts of meetings and telephone conversations between Muddy Waters, LLC and individuals with authoritative knowledge of the matters in contention.Muddy Waters, LLC has reviewed the report on China MediaExpress Holdings Inc. (NASDAQ: CCME) issued today by Ping Luo (of Global Hunter Securities), as well as the February 7, 2011 open letter from CCME chairman Zheng Cheng (http://www.ccme.tv/eng/ir/ceo_letter.pdf).
The report and letter are responses to our February 3, 2011 report, CCME: Taking the Short Bus to Profits.
I have no position in this company and no intention of having one. I may however take one in the next company Muddy Waters issues an opinion on as this would be two out of two they are correct on should their allegations prove correct.
The report and letter are responses to our February 3, 2011 report, CCME: Taking the Short Bus to Profits.
I have no position in this company and no intention of having one. I may however take one in the next company Muddy Waters issues an opinion on as this would be two out of two they are correct on should their allegations prove correct.
