tag:blogger.com,1999:blog-4815867514277794362.post2706761673187742477..comments2024-03-08T06:18:28.125+11:00Comments on Bronte Capital: Focus Media - my new obsession (corrected version)John Hemptonhttp://www.blogger.com/profile/03766274392122783128noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-4815867514277794362.post-73215345583309757002012-09-02T09:47:32.269+10:002012-09-02T09:47:32.269+10:00The Fountainvest connection and reputational value...The Fountainvest connection and reputational value on this one isn't Frank Tang - two of the four founders of Fountainvest, Terry Hu and George Chuang were the lead bankers (at CS and GS respectively) on the FMCN IPO. They've been close to the company since back when it was private and should know as much or more about the company's prospects than FMCN's management team.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-14720173998969927242012-08-31T13:15:43.482+10:002012-08-31T13:15:43.482+10:00Interpretation D is the troubling one, but there i...Interpretation D is the troubling one, but there is a more likely explanation of it. <br /><br />Focus Media overpaid for an acquisition, then sold it for a loss. <br /><br />But the insiders did not take the overpayment, instead they used it to buy advertising. They spread the money out over a number of shell companies, and buy useless overpriced advertising. This boosts revenues, and operating profits. <br /><br />This is near impossible to catch. Auditors cannot find fake revenue if the check actually clears. <br /><br />And they seem to have covered the trail on the overpayment for the company quite well. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-61215494902255598192012-08-27T23:51:44.111+10:002012-08-27T23:51:44.111+10:00The EDU/FMCN pair is interesting.
What I don'...The EDU/FMCN pair is interesting.<br /><br />What I don't get is the post has no substance except to say that FMCN has larger margin than some established player. On that thesis he should short all emerging market names at all times and likely get killed.....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-12958034206171251142012-08-27T18:13:20.695+10:002012-08-27T18:13:20.695+10:00Why not pair it, long EDU short Focus, MW somewhat...Why not pair it, long EDU short Focus, MW somewhat discredited if Focus deal closes, EDU likely to pop, and if Focus does not close, Focus will tank more than EDUAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-9834356865990262032012-08-27T14:34:59.732+10:002012-08-27T14:34:59.732+10:00What are the odds that investors overlook the self...What are the odds that investors overlook the self-dealing and various lies if the financials of the business hold up to scrutiny?mehttps://www.blogger.com/profile/08055223057078438581noreply@blogger.com