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goldminingXpert (29.44)

CCME -- run for the doors

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6

February 03, 2011 – Comments (7) | RELATED TICKERS: CCME.DL

http://www.citronresearch.com/index.php/2011/01/30/citron-research-reports-on-china-media-express-nasdaqccme/

Yet another flakey China company gone bad. Too bad I closed my red thumb at a 20 point gain BEFORE the big crater today.

7 Comments – Post Your Own

#1) On February 03, 2011 at 1:42 PM, goldminingXpert (29.44) wrote:

Question: Which company, CHBT or CCME, get delisted first?

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#2) On February 03, 2011 at 2:03 PM, goldminingXpert (29.44) wrote:

11.19 now. Anyone want to buy it? Some folks around here were saying it was an "easy money" purchase at 20, so it should be a real good bargain now. ;)

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#3) On February 03, 2011 at 2:07 PM, pastordisaster (< 20) wrote:

Happened to CAGC today too:

http://seekingalpha.com/instablog/765391-lucas-mcgee/135436-china-agritech-factory-visits-reveal-a-scam

These things are dropping like flies.

Boo-ya!!! 

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#4) On February 03, 2011 at 4:09 PM, onemember80 (< 20) wrote:

Check out the first paragraph of the article:

http://www.reuters.com/article/2011/02/03/chinamediaexpress-short-idUSN0310812220110203

 "Feb 3 (Reuters) - Shares of China MediaExpress (CCME.O) tumbled 30 percent on Thursday after a research firm that sells stocks short said the company inflated revenue and profit to enrich executives."

 

And also..."Muddy Waters Research said in its disclaimer that it should be "assumed" that it has a short position in companies on which it issues reports."

 

So a research firm with vested interest in declining stock prices made a negative assesment about a company and the shares went down 30% in one day...Confilict of interest here anyone?

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#5) On February 03, 2011 at 4:15 PM, goldminingXpert (29.44) wrote:

Read the reports ... the company is a fraud. The short sellers are getting paid for doing research. Just as people who tout stocks get paid if the company is legit and gains value.

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#6) On February 03, 2011 at 6:16 PM, onemember80 (< 20) wrote:

 

goldminingXpert,

my point was not whether the company is a fraud or not, time will tell...as it did with Enron when research firms and the SEC were saying they are doing great and everyone should invest their 401k monies into it.

 The point was there is a huge conflict of interest when a "research company" uses it's "popularity" to swing to a huge profit in a couple of days. Buy stock X today, trash it tomorrow, profit and close the deal. Regardless of whether the trashing is right and there is no consequences if they are wrong. But the money has left the field at that point.

 Jim Cramer has admitted to doing the same crap before. Buy/Short a stock, go on TV,boost/trash the stock, cash in.

 So, it's not so much about research - and hats down to those that do - but about how much manipulation is allowed and the joke that is SEC. 

 

 

 

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#7) On February 03, 2011 at 8:46 PM, goldminingXpert (29.44) wrote:

Citron has a huge track record to look at. All their archived reports (including their misses, such as Interoil) are available. They are right 90%+ of the time. The rare times they miss are generally when they complain about valuation (HUSA, Lifetime Fitness). When they say something is a fraud, it is in fact a fraud. If they were wrong, they could be sued in court. So far, they've never lost a case. Why? Truth is an acceptable defense to libel charges.

Unlike Cramer, Citron is a serious research firm. They get paid by short selling, just as a research firm that finds undervalued firms makes money touting them and then having the stock rise.

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