tag:blogger.com,1999:blog-4815867514277794362.post3212148964225387772..comments2024-03-08T06:18:28.125+11:00Comments on Bronte Capital: China Media Express: A Wall Street dramaJohn Hemptonhttp://www.blogger.com/profile/03766274392122783128noreply@blogger.comBlogger32125tag:blogger.com,1999:blog-4815867514277794362.post-49057282124658698742013-07-01T23:32:46.478+10:002013-07-01T23:32:46.478+10:00John,
In the blog you mentioned that ONE of the ...John, <br /><br />In the blog you mentioned that ONE of the negatives that stood out was that "the company once used a stock promoter that was previously associated with some frauds" can you assist me and identify that promoter? I am a Professor who is writing an article about the CCME fraud. <br /><br />Dr. Steve Solieri, CPA <br />Queens College, CUNYAnonymoushttps://www.blogger.com/profile/14360291295011671466noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-77148663089818009832012-04-13T13:02:34.042+10:002012-04-13T13:02:34.042+10:00Coming and reading all these comments after all th...Coming and reading all these comments after all this time made me squirm and was pretty painful. Poor longs.<br /><br />http://finance.yahoo.com/q?s=CCME.PKmprhttps://www.blogger.com/profile/12899342377358226562noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-12810761502219030882011-02-04T16:05:14.974+11:002011-02-04T16:05:14.974+11:00So, after reading all the blogs about CCME, I am w...So, after reading all the blogs about CCME, I am wondering if anyone has a different opinion than before. I noticed that the Directors and 10-18% owners of CCME have been selling significant shares since last August. Doesn't that say something?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-53756694396759059342011-02-02T14:50:12.288+11:002011-02-02T14:50:12.288+11:00SAIC - here is the reality, minus the spin:
http:...SAIC - here is the reality, minus the spin:<br /><br />http://www.nyggroup.com/library/NYGG-SAIC.pdf<br /><br />SAIC is a moot point anyway, this year CCME will submit matching audited numbers to PRC-SAIC and US-SEC (to the extent possible within respective accounting requirements). <br /><br />Hint: the SAIC numbers will be adjusted to match the SEC numbers, not the other way around.<br /><br />No one in China has accused CCME of tax evasion. SAIC was not an issue until it was raised by the investment community, and the company is rectifying the situation shortly - the new SAIC is filed in March/April.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-59622352921132668672011-01-09T07:23:21.047+11:002011-01-09T07:23:21.047+11:00Explain this to me: How does Deloitte get fooled b...Explain this to me: How does Deloitte get fooled by the cash accounts at CME? And why does a company that's supposedly trying to fool their auditors hire - at great expense - a top-notch auditor that will scrutinize the books 10 times more closely than some low-brow auditor that would cost them less money. A giant auditor like Deloitte sends a team into a company's offices and scrutinizes every aspect of the firm's business. They will verify customers, revenues, expenses, cash balance, taxes owed, taxes paid, operating agreements, you name it. And they charge a lot of money to do that, they are the best at what they do and it takes a lot of time and expertise to perform an audit on that level. And if the company is unusually profitable or performing better than other companies in the sector, then a world-class auditor asks questions and finds out why. Basically, hiring Deloitte is the most expensive and most intrusive choice a company can make.<br /><br />CCME is therefore legitimate.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-91150508745165402152010-12-28T08:33:26.159+11:002010-12-28T08:33:26.159+11:00John, As of today's short interest report, sho...John, As of today's short interest report, short % is at its highest, 48% of float = 4.8mil+ shorts on it. Maybe the same fund got back into the game, looks like there is going to a part 2 of the squeeze soon.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-88368388531875113562010-12-03T18:12:41.891+11:002010-12-03T18:12:41.891+11:00to call The University of Wollongong "distinc...to call The University of Wollongong "distinctly second tier" seems a bit harsh, don't you think? I always considered it to be just outside the top 10 (11-12) - when I think second their I usually think the likes of UWS or Deakin.<br /><br />and no, I am not, nor ever was, a student at Wollongong.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-8600607290027184932010-11-30T09:42:01.090+11:002010-11-30T09:42:01.090+11:00am sure you have already seen, but in case you hav...am sure you have already seen, but in case you haven't, the latest claim is against Chinese education stock CEU by Kerrisdale. Link to the report is here http://kerrisdalecap.com/wp-content/uploads/2010/11/CEU-Report-November-2010.pdfUnknownhttps://www.blogger.com/profile/03173779062295003533noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-65039932340644949512010-11-22T01:16:03.429+11:002010-11-22T01:16:03.429+11:00CCME has 50% of market share with no national comp...CCME has 50% of market share with no national competitor, The only regional competitor is a company in Zhejiang province.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-83974280228284565142010-11-22T01:09:35.294+11:002010-11-22T01:09:35.294+11:001) The official pricing for 15 seconds on 1000 bus...1) The official pricing for 15 seconds on 1000 buses per 15 sec is currently at about 200K RMB at a coastal province.<br /><br />2) CFO quoted utilization rate at 90% in March. VISN and FMCN are far lower. You may wonder if 90% is too high, but the fact that they are migrating to direct sales means that they don't care about the ad agency that much, which they probably won't do if the utilization rate is low.<br /><br />3) The company pricing, as far as I could see, is at par with VisionChina. The company's claim of lower CPM than Vision and Focus is probably due to means of measure.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-60765093486285465242010-11-22T01:09:06.113+11:002010-11-22T01:09:06.113+11:00CCME has a network of 34,000 displays and revenue ...CCME has a network of 34,000 displays and revenue of US$96 million. This implies a revenue of US$2,800 per screen per year.<br /><br />VISN has a network of 66,000 displays and revenue of US$106 million. This implies a revenue of US$1,600 per screen per year.<br /><br />FMCN's has a network of 131,000 displays and revenue of US$229 million (LCD display network only). This implies a revenue of US$1,750 per screen per year.<br /><br />I just don't see how CCME can command a pricing 50% premium over FMCN and VISN, unless there is something I am missing.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-67023856931581069592010-11-21T17:53:08.510+11:002010-11-21T17:53:08.510+11:00Over the past few months, the topic of financial f...Over the past few months, the topic of financial filings with China’s State Administration for Industry and Commerce (SAIC) has made frequent appearances within the U.S.-listed Chinese RTO (“reverse takeover”) sector. I and other critics have advocated that AIC filings are important data points in determining whether certain Chinese RTOs are falsifying their SEC financial statements. In cases where AIC-reported revenue, profit and assets are substantially lower than SEC-reported financial figures, we’ve claimed that this provides material evidence that the companies in question are fabricating their SEC financials.<br /><br />Our arguments have made sense to many investors, but some remain unconvinced. Misleading responses by certain of the alleged frauds that AIC filings don’t matter have muddled the debate. These companies, such as CMFO, LIWA or CSKI, have claimed that AIC filings are unimportant and are not taken seriously in China, and that investors should not use these filings as data points when analyzing U.S.-listed RTOs. I strongly disagree.<br /><br />The point of this article is that AIC filings do matter.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-53039680313212647172010-11-20T17:06:21.776+11:002010-11-20T17:06:21.776+11:00John,
Hope things are going well for you recently...John, <br />Hope things are going well for you recently. I assume you caught this little piece of news today, which I imagine you took as <b>sweeeeeeeeeeeeeeet!!!</b><br />http://www.zerohedge.com/article/rino-signs-own-death-sentence-company-likely-be-halted-forever-chinese-ipo-craze-fizzlesTed Khttps://www.blogger.com/profile/04439145475995731508noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-1790069001645541002010-11-20T05:30:23.452+11:002010-11-20T05:30:23.452+11:00Hi John, I was gathering information about CCME an...Hi John, I was gathering information about CCME and the "net" brought me here. I am interested in this company and i am looking for a long position entry point at 14$ or lower.<br /><br />You said you're short on the stock but your arguments didn't convice me. In sum you wrote:<br /><br />1- The managment have little experience. (But they are delivering results)<br /><br />2- Fat margin don't last forever. (Sure, but you can check the margin quarter after quarter and get out of the stock in time)<br /><br />3- There might be fraud (but you reminded us that the auditor is reputable)<br /><br />Are there more reason to short the stock?? I'm sure there got to be more reasons for you to short CCME.<br /><br />I hope you'll forgive my poor english but i am only a young student from Europe. <br /><br />Best Regards, DavideDavidenoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-7513018125764263162010-11-19T18:13:26.010+11:002010-11-19T18:13:26.010+11:00Welcome back John you are truly missed, read and l...Welcome back John you are truly missed, read and loved by many!<br /><br />Having had my own expensive time consuming litigious battles I can only hope you are coping better than I did.<br /><br />Potato,<br />Hello my fellow Canadian!<br />Any tips for me to pass along to my MPP on how to make regulations that are actually fair, easy to enforce, and actually effective at preventing future systematic risk? <br /><br />Here is a tip from Alberta..<br />We do not even have a national regulator.<br />Canada has over a dozen and they speak 2 different languages French and English. <br />Regulating derivatives is impossible as our present structure is flawed to the core.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-63315309796834520802010-11-18T16:38:21.135+11:002010-11-18T16:38:21.135+11:00John, good to see you back at the blogging, after ...John, good to see you back at the blogging, after over a month without a post I was starting to worry!<br /><br />An unrelated question for you: Ontario (Canada) has just announced that it <a href="http://www.theglobeandmail.com/globe-investor/ontario-plans-to-regulate-derivatives-markets/article1803611/" rel="nofollow">intends to regulate derivatives</a>. Any tips for me to pass along to my MPP on how to make regulations that are actually fair, easy to enforce, and actually effective at preventing future systematic risk? (To my thinking, a central clearinghouse and transparency are just the first step, a needed infrastructure for there to be any hope of enforcement of <i>other</i> regulations).Potatohttp://www.holypotato.netnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-6308710191915431902010-11-18T09:53:30.838+11:002010-11-18T09:53:30.838+11:00I find it hard to compare CCME's accounts to a...I find it hard to compare CCME's accounts to any banks accounts. CCME has an incredibly simple business model, income is essentially all cash, minimal debt, minimal accounts receivable, very few physical assets... If there is something amiss and Deloitte is not catching it I would be shocked. A bank on the other hand has an incredibly complex balance sheet.<br /><br />I guess the conclusive evidence that CCME is indeed legit will be next March when their annual 10-k is filed and Deloitte has announced that the cash flow we are seeing is in fact real. I am on the side betting that Deloitte is not being tricked by the simplest business model of all time and that CCME is just starting its ascent towards a fair valuation. <br /><br /><br />Side note: it does appear that there is a lot of riff raff that has somehow come to market via these reverse ipos. I find it rather amusing how often fraud! is screamed. On the other hand how can one lump CCME in with these shadier companies. CCME has a legitimate auditor (Deloitte), experienced CFO (Jacky Lam formerly of PWC, and a rather serious amount of cash flow (I think this is one of the keys here that isn't thrown out there often enough, the cash is the key). I think in the next year a variety of fraud will be uncovered in the market but CCME will definitely not be one.<br /><br />Second Side Note: Any talk of margin compression seems absurd. Right now the cost per minute charged by CCME is incredibly low compared to any other form of media. If the bus operators do decide to increase their rate then CCME should have no problem increasing cpm and maintaining, if not improving!, their current margins.Steve Longhttps://www.blogger.com/profile/13401042784984051415noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-21383045901708342592010-11-18T07:21:55.368+11:002010-11-18T07:21:55.368+11:00JCD sign 15 year deals in the UK with local counci...JCD sign 15 year deals in the UK with local councils for bus shelters and then extend them 5 years into the deal - poor council officers think they are getting a good deal - never know just how profitable the deal!!!!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-27482841217337139352010-11-18T06:18:54.250+11:002010-11-18T06:18:54.250+11:00I don't know why WSJ would link to your post a...I don't know why WSJ would link to your post as a "worthwhile read of short analysis"... article is weak at best.<br /><br />Timothy Conway's comment is a worthwhile read though.another value investorhttps://www.blogger.com/profile/07659083327214275843noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-924166174206542812010-11-16T20:42:26.711+11:002010-11-16T20:42:26.711+11:00well, the Volkswagen short worked in the end becau...well, the Volkswagen short worked in the end because the company was overvalued any dime over 70 euros. the whole market knew, but noone was able to make it happen. ego's at the NRW-government, Porsche and VOW. <br />the guy who put all his owned in shorts, lost his empire and his life.Jacobhttps://www.blogger.com/profile/15280566363678151025noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-73375089225879030512010-11-16T13:44:01.674+11:002010-11-16T13:44:01.674+11:00It sounds so much like Antony's speech at Caes...It sounds so much like Antony's speech at Caesar's funeral:<br /><br />But Brutus says he was ambitious;<br />And Brutus is an honourable man.<br /><br />====<br /><br />Memo Mr Hempton: Don't use anaphora unless you really mean to insinuate shady goings-on.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-20961367882598808492010-11-16T00:53:30.927+11:002010-11-16T00:53:30.927+11:00John, you should check out the Brazilian bank call...John, you should check out the Brazilian bank called Banco Panamericano that was caught with fraud last week. The auditor there was also Deloitte and the Brazilian Central Bank found a 2.5B hole in this bank that had 12B in assets..Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-63730317894551428632010-11-15T23:51:11.958+11:002010-11-15T23:51:11.958+11:00Ah - Volkswagon/Porsche...
That was a strange arb...Ah - Volkswagon/Porsche...<br /><br />That was a strange arb...<br /><br />The Volksagon borrow never became impossible and the Volkswagon short worked in the end.<br /><br />IF you were 1 percent in the short - you probably lost money (forced covering). We might have lost a little. <br /><br />If you were 5 percent in the short (as many were) you had a VERY BAD TIME. <br /><br />We short MANY stocks in SMALL QUANTITY. This is the reason.<br /><br />JJohn Hemptonhttps://www.blogger.com/profile/03766274392122783128noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-9995968541759656972010-11-15T21:16:38.753+11:002010-11-15T21:16:38.753+11:00the worst short ever imo has been Volkswagen. at s...the worst short ever imo has been Volkswagen. at some point, it had the largest marketcap in the world (past Exxon)<br />in the end it netted us (equity options traders) a small amount, despite huge margins and enormous losses once in a while. <br />remember, one billionaire killed himself over it.Jacobhttps://www.blogger.com/profile/15280566363678151025noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-41676862285302474452010-11-15T12:27:02.944+11:002010-11-15T12:27:02.944+11:00John, there are a couple of inaccuracies in your a...John, there are a couple of inaccuracies in your article. The CFO is not under 30 years old, he has multiple degrees and has 8 years at Price Waterhouse prior to CCME. Re the 'stock promoter', this never happened. If you are referring to otcjournal.com, they were not compensated for their coverage and purchased their 1k long shares on the market (see the web site's disclosure section).<br /><br />I fail to understand why you feel someone must be corrupt here. The only corruption I've seen is from endless lies posted on the interweb re this company. Yet no one has ever backed up these anonymous assertions with facts. As you stated - the business model is simple and the company is fully vetted.gunnarnoreply@blogger.com