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Muddy Water Replies To China MediaExpress (CCME), Reiterates Strong Sell

Tyler Durden's picture





 

The war of words between Muddy Waters and alleged Chinese fraud company, China MediaExpress Holdings escalates as the company that exposed RINO for the fraud it is, issues its latest update on the situation. Bottom line: "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."

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.

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. 

The first report in the MW-CCME saga can be found here.

 


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Thu, 02/17/2011 - 16:14 | Link to Comment Misean
Misean's picture

"We intend to shortly contact...enforcement division of the Securities and Exchange Commission with documentation of our work, including evidence that directly contradicts statements in the aforementioned documents," as well as gold membership passwords for a variety of porn sites hidden in the documents.

Fri, 02/18/2011 - 09:42 | Link to Comment fx
fx's picture

Interestingly, they state that they have NO position in the stock anymore! Alas, there will be no follow-up, they know that they are out of ammo here. Why else cover at 12-14$ when they were soooo convinced that the stock is worth $5? Next thing you know they will go long, apologize for some "misjudgements" and "misinterpretations" and ride the stock back up for 10 bucks. crooks, but smart crooks so far - first screwing longs and now all the shorts who sold based on their fabricated "report".

Thu, 02/17/2011 - 16:18 | Link to Comment topcallingtroll
topcallingtroll's picture

Woohoo! Free porn!

Thu, 02/17/2011 - 16:18 | Link to Comment Gubbmint Cheese
Gubbmint Cheese's picture

Does Muddy Waters cover JPM, BAC or C?

 

Thu, 02/17/2011 - 16:23 | Link to Comment Misean
Misean's picture

No, they're just in deep shit.

Fri, 02/18/2011 - 06:34 | Link to Comment fx
fx's picture

why should they? Aren't these big banks clear and transparent beyond any doubt - nothing muddy there! As are the guys at Muddy Waters, no?

Rarely has a  shady "research" outfit and caterer to criminal short sellers described itself and its ethics so properly by its own name.

As things stand,  Global Hunter's on the ground research update came a day or two too early for MW and their friends - these February puts have suddenly gotten much cheaper. Since they have NO evidence at all they could only do a re-iteration that was lacking any substance, hoping to contain the stock's rise. I do hope the crooks at MW  get their heads handed to them in short order.

Thu, 02/17/2011 - 16:22 | Link to Comment Cdad
Cdad's picture

I wonder if Duncan Niederauer is proud of this pile of Chinese fraud he has brought to America...as he simultaneously sells the floor of the NYSE? 

What a man.

Thu, 02/17/2011 - 16:27 | Link to Comment kragsquest
kragsquest's picture

"Investor Hub" has some loyal longs in CCME: http://investorshub.advfn.com/boards/board.aspx?board_id=16418

 

I asked one of the unbiased stock analysts over at IHub for his thoughts on CCME last week, and he said the chart pattern was essentially broken and to sell on a "pop". 

 

I wish I had stayed in hard assets 100%!

Thu, 02/17/2011 - 16:58 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Got NVDA ??? Or GLUU ???

Thu, 02/17/2011 - 18:20 | Link to Comment Hephasteus
Hephasteus's picture

Yes buy nvidia. Watch tegra 2 die in a fire.

I heard there were 1.6 billion cell phones sold in 2010. Not bad for a planet of only 7 billion. Everybody who is not an old person or a child bought one. LOL

Thu, 02/17/2011 - 19:52 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

.....???

............. " Nvidia demonstrated a quad core system-on-chip at the Mobile World Congress, one which is known as Kal-El (and named after Superman) and is likely to inherit the market name of Tegra 3 when it launches.


The component can apparently decode a 2560x1440 stream (that's 33 per cent more information than a full HD one) at a resolution of 1366x768 pixels while handling a 30-inch 2560x1600 pixels monitor, flawlessly according to Engadget.

The Tegra 3 is expected to provide roughly twice the processing power of the Tegra 2 which means that there will be no increase in clock speed for the core.

However, on the other hand, Nvidia promises a 200 per cent increase in the graphics performance compared to the Tegra 2 thanks to twelve GPU cores.

Even then, Nvidia says that you will be able to get 12 hours worth of HD video playback out of the chip; the chip is expected to be available in August 2011 in tablets and in a different version in smartphones. 

 

An official Tegra Roadmap shows that 2012 will see the launch of Wayne (from Batman, AKA Tegra 4) which will have twice the performance of Kal-El, then followed by Logal (from X-men, AKA Tegra 5), boosting what appears to be a 3x increase in performance compared to the Tegra 4 and finally Stark (from Iron man, AKA Tegra 6) which Nvidia claims will provide around a 80x performance increase compared to the Tegra 2 in 2014.

The roadmap also includes the Core 2 Duo as a baseline with the performance of the Tegra chips improving exponentially over the years.

2013 could also be the year when Nvidia launches Maxwell, its first product from Project Denver, out of the door, one which is expected to fuse the Cortex A15 and Geforce. " ...........................

http://www.itproportal.com/2011/02/17/nvidia-launch-kal-el-quad-core-soc...

Fri, 02/18/2011 - 05:03 | Link to Comment ZeroPower
ZeroPower's picture

Honestly this is becoming a farce.
MW lost credibility after coming out, literally hours after another shop reiterated their 'Strong Buy' rating on CCME, with this Strong Sell rating, providing no more new or relevant info to the issue at hand.

Fri, 02/18/2011 - 09:44 | Link to Comment snowball777
snowball777's picture

What is the Mandarin phrase for "pump and dump"?

t?nghuò péngzhàng hé q?ngdào

Fri, 02/18/2011 - 12:46 | Link to Comment kragsquest
kragsquest's picture

The lawyers sense blood in the waters.  I have never seen so many securities law firms jumping on the case of a single company.

http://www.quatloos.com/Q-Forum/viewtopic.php?f=7&t=6893

Do NOT follow this link or you will be banned from the site!