Aaand It Gets WORSE at China MediaExpress Holdings CCME

This post is from Stone Street Advisors

When you - in this case, CV Starr and affiliated funds - buy a large
chunk of a Chinese Reverse Merger company, like, oh, I dunno, China
MediaExpress Holdings, and you get a board seat, perhaps you should
insist your "man on the ground" is on the Audit, not Compensation
committee.  And perhaps you should do a little more independent due
diligence, instead of meeting management and reviewing documents they
supply.    Just sayin...

Otherwise, don't be surprised when your Auditor and CFO resign, and your board member steps down citing "in particular, irregularities in the bank account balances of CCME's PRC subsidiaries."

What'd I say going back to February 3rd when I first got into the CCME debate (and have said since)?  Last week, to quote myself:

The CEO & mother own 80% and 20%, respectively, of
the operating entity, Fujian Fenzhong Media Co (PRC), but a lower % of
CCME shares.  The only way money flows to CCME from the operating
entity is through what seems to be mostly questionable "contractual
arrangements" (see page 22/23 of the 10-k) between the entities.  Does
no one else think it was a red flag that the CEO & family own all
of the operating entity IN CHINA, yet less of the supposedly effective
managing entity?  If there is or was ever any money actually coming out
of the operating company, where do you think it's really going?  To
CCME shareholders, or to the CEO & family?

Sure, the entire story is as-yet unwritten, but come on, is anyone
still unconvinced this firm is anything but a fraud?  If there even is
any money to be had - presuming it's in CCME bank accounts in the U.S., a big presumption - the cash, any remaining "assets," less the stock
CV Starr tries to put-back/sell (best of luck!) is probably worthless
or very close to it.

Caveat Emptor baby...

Comments

[GhostTrader]

do you know what I am saying?