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goldminingXpert (29.46)

CCME: Irrefutable Evidence of Fraud (Muddy Waters)

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9

March 02, 2011 – Comments (38) | RELATED TICKERS: CCME.DL

Too bad for Glen Bradford and the other pumpers of Chinese RTOs. Their bellweather is going down. Under $11 now. Will the longs pull another rabbit out of their hats? The CCME drama continues on.

The report can be accessed here: http://click.icptrack.com/icp/relay.php?r=29923034&msgid=232131&act=HZSQ&c=723479&destination=http%3A%2F%2Fwww.muddywatersresearch.com%2Fwp-content%2Fuploads%2F2011%2F03%2FCCME_IrrefutableEvidence_030211.pdf

38 Comments – Post Your Own

#1) On March 02, 2011 at 11:46 AM, kdakota630 (29.56) wrote:

But Muddy Waters says everything is going to be alright this morning.

(Sorry, it was the first thing that popped into my head and I couldn't resist.)

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#2) On March 02, 2011 at 12:16 PM, nilesgold (22.84) wrote:

Just because Muddy Waters issues a memo and the stock price drops doesn't make the accusations of fraud accurate.

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#3) On March 02, 2011 at 12:36 PM, DragontoadX (24.51) wrote:

lol - it will be hillarious if this finishes green on MW's "irrefutable" evidence

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#4) On March 02, 2011 at 12:38 PM, ETFsRule (99.94) wrote:

Yawn.

MW is right on schedule, as usual... releasing something right after CCME shows up on RegSHO. Citron will probably release another report soon.

The short squeeze is coming... these clowns can't stop it.

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#5) On March 02, 2011 at 12:39 PM, goldminingXpert (29.46) wrote:

I think WCTBill is going to get himself sued by angry shareholders when all is done. The dude is shameless. I wonder how much CCME is paying him.

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#6) On March 02, 2011 at 12:46 PM, DragontoadX (24.51) wrote:

I wonder how much CCME is paying him.

Probably more than MW is paying you - at least he does original work lol

Just kidding although it is childish to make these allegations 

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#7) On March 02, 2011 at 12:52 PM, nilesgold (22.84) wrote:

@goldminingXpert - you seem pretty sure that CCME is a fraud.  Are you basing this purely on Citron and MW?

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#8) On March 02, 2011 at 12:56 PM, truthisntstupid (83.28) wrote:

You all enjoy arguing about it.  I'm sure glad it's only my worst CAPS pick and that's all it it is.

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#9) On March 02, 2011 at 12:59 PM, goldminingXpert (29.46) wrote:

@niles: I'm as much convinced by who supports CCME as who opposes it. CCME has unheard of third-rate analysts such as Global Hunter, barely comprehensible shills such as Kurt Shrout, Michael Anderson, Clayton Reeves, etc., smarter but still silver-tongued promoters (Glen Bradford et. al), and

On the flip side, you have Citron who is almost always right, MW who has built a decent track record (RINO was a fraud, ONP appears to be a fraud, CCME we'll see), Bronte Capital (great track record), etc. Plus the letter from CCME management was really stupid and other than that, CCME has shown no interest in defending itself.

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#10) On March 02, 2011 at 1:15 PM, nilesgold (22.84) wrote:

Those sound like terrible reasons to believe CCME is a fraud.

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#11) On March 02, 2011 at 1:45 PM, goldminingXpert (29.46) wrote:

@niles: Time will tell who is right.

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#12) On March 02, 2011 at 1:52 PM, magnetpal (< 20) wrote:

I am not a CCME share holder. But from what I see, it has been a long time CCME was blasted for fraud. Did we have any convincing response from CCME management? Does not look like. If they have had, it would have put every fraud claim into rest.

 Using common sense, it does not smell right to me. Over the time, GMX will be right I suppose. Generating such an insane profits using bus advertisements, is just I can not believe.

Attaching emotions to a stock does not work! I see a lot of emotions here.

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#13) On March 02, 2011 at 3:21 PM, ChrisGraley (29.75) wrote:

They say the have a recorded phone call.

That type of thing gets dragged into court if it's a false statement.

We'll see, but I can't MW would be dumb enough to say that they have a recorded call if they don't.

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#14) On March 02, 2011 at 3:25 PM, goldminingXpert (29.46) wrote:

Exactly Chris. Longs here are really trying their best to ignore the obvious warning signs.

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#15) On March 02, 2011 at 3:31 PM, nilesgold (22.84) wrote:

I will fully admit that don't know if CCME is a fraud or not, and aside from a few CCME insiders, no one else does either.  I am not convinced that MW, Citron, or any of the others heavily involved (both long and short) are either being completely honest or have a full grasp on the company.  As a retail investor many of the things going on regarding this stock have been either foolish, irresponsible, or reprehensible.

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#16) On March 02, 2011 at 3:45 PM, DragontoadX (24.51) wrote:

It is impossible to "know" whether CCME is a fraud or not unless you are an insider.

While I personally feel very strongly that it is NOT a fraud, I cannot know with 100% certainty and would not advise anyone to invest in this company unless they can make up their mind that it is not a fraud based on their own review of the evidence. In the case of CCME, there are many arguments on both ends, and while it is impossible to have all the information about any company, it is even more difficult with CCME.

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#17) On March 02, 2011 at 4:02 PM, Puros (< 20) wrote:

goldminingXpert

 

I would hope you would stick to "gold' you know nothing about these stocks.

 Muddy waters was right once and only once, and Citron is all over the board 

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#18) On March 02, 2011 at 5:36 PM, Option1307 (29.75) wrote:

I've done very little research regarding CCME, but if MW calls them a fraud it certainly has to make you wonder (putting aside their obvious intent to drop the stock and make $$$). You can't just call a company a complete fraud and not expected to get sued, so you better be pretty damn sure before hand.

Just like with CHBT, etc. time will tell and I for one plan on sitting on the sidelines eating popcorn and watching the show!

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#19) On March 02, 2011 at 5:38 PM, Option1307 (29.75) wrote:

Btw #17 is hilarious, it must just be a coincidence that he has no picks/comments/blogs until today...right? ;)

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#20) On March 02, 2011 at 8:11 PM, Clint35 (66.23) wrote:

I think the evidence Muddy Waters has is pretty convincing. I wouldn't agree that it's ir-refutable. But still pretty good evidence. But there's also the possibility they just made all that up to make money shorting CCME. I guess we'll have to wait and see to find out for sure. I took CCME off my caps portfolio yesterday. Tired of watching it dive. 

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#21) On March 02, 2011 at 8:12 PM, ETFsRule (99.94) wrote:

"ChrisGraley (99.84) wrote:

They say the have a recorded phone call.

That type of thing gets dragged into court if it's a false statement.

We'll see, but I can't MW would be dumb enough to say that they have a recorded call if they don't."

MW is a non-existant "research firm", so it would be very difficult to file a lawsuit against them. Carson Block lives in China, but Muddy Waters itself is nothing more than a website - there is no location listed for their so-called "firm". In the Youtube video they say, "the voice of our analyst has been disguised", so nothing can be traced back to Mr. Block.

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#22) On March 03, 2011 at 8:59 AM, goldminingXpert (29.46) wrote:

I didn't wish to comment until my article was published, but either call options on CCME are stupid cheap or the company is likely fradulent: http://seekingalpha.com/article/256119-china-mediaexpress-holdings-options-market-suggests-future-is-bleak

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#23) On March 03, 2011 at 9:52 AM, DragontoadX (24.51) wrote:

Good article - If I had an options account I would definately be buying some calls myself.

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#24) On March 03, 2011 at 9:57 AM, goldminingXpert (29.46) wrote:

Thanks. I've not traded CCME in any way at all this entire time, but I was somewhat tempted to buy 1 solitary call on CCME just to see what happens while writing the article. You get an absurd return if the company is legitimite.

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#25) On March 03, 2011 at 10:07 AM, DragontoadX (24.51) wrote:

lol - I can't imagine what the SA commenters would say if you did that and put in the disclaimer...

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#26) On March 03, 2011 at 10:21 AM, goldminingXpert (29.46) wrote:

Yeah, it would have caused a scene for sure.

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#27) On March 03, 2011 at 10:53 AM, JaysRage (89.42) wrote:

NEW YORK, Mar. 3, 2011 /PRNewswire/ -- The New York securities fraud enforcement division of the SEC has today filed a criminal and civil fraud complaint in the southern District of New York against Citron Research LLC and Muddy Waters Research LLC and their principals, Andrew Left and Carson Block, respectively as well as three fund management companies.

The SEC complaint alleges the defendants engaged in the dissemination of false information, insider trading and illegal collusion to benefit financially. The SEC further alleges that the defendants knowingly published false and misleading research reports relating to China MediaExpress Holdings (“CCME”) in order to influence the market price of the common stock of the issuer and that the defendants colluded amongst themselves and with a number of hedge funds before releasing said research reports to coordinate trading in such a way that the effect of the fraudulent reports was amplified in the market.

The SEC is seeking permanent injunctions, financial penalties and repayment of trading profits totaling $27 million from Left, Block and the hedge funds, as well as life-long bans on their participation in the securities industry or as directors or officers of any publicly listed companies.

The complaint, filed on March 3, 2011, in the Southern District of New York, names as defendants Citron Research LLC, Muddy Waters Research LLC, Mr. Andrew Left, Mr. Carson Block as well as Ethanos Investments Inc., SuperDrive Funds Inc. and CBK Investments Inc. The SEC claims the scheme began in January 2011, when Mr. Andrew Left was offered compensation for writing a research report on CCME by Ethanos Investments. Mr. Block was invited to participate in the scheme shortly thereafter and additional participants were invited to participate and coordinate in order to gain financially in the ensuing months.

"Based on the allegations, it appears the SEC has a powerful case against both Carson Block and Andrew Left and the funds involved” said Kathryn Smith, managing director at Elementary Financial Group in Washington and a former SEC enforcement official.

Disclaimer:

Lemonade does not guarantee in any way that it is providing all of the information that may be available. I recommend that you do your own due diligence before buying or selling any security. At any time, the principal of Lemonade might hold a position in any of the securities profiled on this post. Lemonade will not report when a position is initiated or covered. Each investor must make that decision based on his/her judgment of the market. The above press release may be and is likely entirely fictitious and is meant purely to begin a discussion on how the short attacks on CCME may have come about and what will likely be done about it.

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#28) On March 03, 2011 at 11:02 AM, DragontoadX (24.51) wrote:

The above press release may be and is likely entirely fictitious

Gotta read those disclaimers... 

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#29) On March 03, 2011 at 12:37 PM, JaysRage (89.42) wrote:

I know it's a fake.    It's a good fake, and I thought it was humorous.    Better quality work than most of the hit pieces.    I noticed that Herb Greenberg jumped on to defend Muddy Waters as a potential "victem" of a CCME sting with their recent video of a call that they put on you-tube.   I would have thought that he would try and distance himself from the short-selling criminals and continue to portray himself as a serious analyst.   Maybe he just finally resigned himself to the status of a short-seller front man.   Maybe MW and him have the same sponsors in the background.   The plot thickens. 

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#30) On March 03, 2011 at 7:56 PM, DragontoadX (24.51) wrote:

Great new quote from Carson Block today:

 

"I'm quite familiar with disseminating misinformation" 

-Carson Block (3/3/2011)

http://www.cnbc.com/id/41776841

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#31) On March 03, 2011 at 11:55 PM, goldminingXpert (29.46) wrote:

That's one of the more humorous out-of-context quotes I've seen in awhile Dragontoad. Nicely done.

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#32) On March 04, 2011 at 2:03 AM, DragontoadX (24.51) wrote:

LOL.. well if you liked that one, here is my translation of the full quote:

"Having done (apparently unsuccessful?) business in China where we routinely encountered [potential customers] looking to learn about our business model, I'm quite familiar with disseminating misinformation. We did so when speaking with persons who did not appear to be [likely to otherwise purchase our services]. That doesn't mean that we (MW) [lie all the time], ...we [sometimes] corroborate our information before going on the line."

By the way - have you seen Carson's business?!  

http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.loveboxstorage.com%2Fhome-cn.html

"Love Box" Self Storage?? LOL... a few choice quotes from the (translated) page:

"Love Box's slogan "Get Self Storage Without BS" in American culture is very controversial. BS is [*expletive*], trouble can be compared to the Chinese meaning, nonsense, but the most appropriate translation to be "fart" was."  (yes.. the "Love Box" slogan is therefore: "Get Self Storage Without Fart" LOL)

"Love Box Self Storage designed ... to provide an independent mini-storage space"

"We offer ...flexible storage services"

"...you can save your beloved item at ease while improving the quality of urban life." 

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#33) On March 04, 2011 at 2:20 AM, DragontoadX (24.51) wrote:

"Any time when you have no place to store items, but do not want to mess things the heap in the home or office, you can choose to store items safe and secure private storage in the Love Box."

"the private storage has begun to penetrate the Asian market" (or perhaps the other way around?)

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#34) On March 04, 2011 at 9:43 AM, goldminingXpert (29.46) wrote:

Self-storage has never been so sensual. Who knew? ;)

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#35) On March 04, 2011 at 9:56 AM, wolfhounds (29.21) wrote:

Hey, jdakota:

Maybe you should have chose "County Jail".

 

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#36) On March 06, 2011 at 12:21 AM, goldminingXpert (29.46) wrote:

And now the Global Hunter report has vanished.

Advantage: Bears! 

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#37) On March 11, 2011 at 1:57 PM, guiron (21.63) wrote:

The thing about Muddy Waters is they have an interest in every report they issue, so they're bear raiders and I guess pretty good at what they do, though despite their noble claims it's not necessarily bringing transparency to the market. I am not sure they really care about much besides generating enough interest to allow their shorts to pay off, but they make no bones about the fact that's what they do, alongside their alarming reports. They go after targets who have very little in terms of legal recourse and whose shares have obviously been overbought, so far in China. It's almost like Cramer. By the time they issue the report the market has mostly reacted to it, so getting in early is pure luck or knowing someone at MW. It's possible to short after they do but hard to tell when a squeeze might be coming.

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#38) On March 11, 2011 at 4:00 PM, goldminingXpert (29.46) wrote:

CCME halted awaiting news. Advantage: Strongly to the bears.

CHBT is finally under $10 that stupid piece of tripe. Nice to see. 

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