Want to see what a bear raid looks like?

wow

I don't know much about the company. CCME was recommended to me by my broker. I told him I'm suspect of Chinese companies and I'll just keep and eye on it. I already own one Chinese company AERL and that's enough Chinese exposure for me. Chinese companies, in my experience, seem to be targets for bear raids, rightly or wrongly. During my brief readings of the company I'm pretty sure they're an RTO. It looks like it's going to be a very volatile stock the next few weeks/months due to allegations of fraud and company law suites against Citron and Muddy Waters (two researchers claiming CCME is a fraud). Reading the Yahoo CCME message board, there are a lot of pissed off longs. I've seen this song and dance before with other Chinese companies. This is prolly a legit company but the damage is done and the shorts are in control. The only way to break the shorts is to bring in new buyers. I don't believe that's going to happen unless positive company news pops up. I'll be watching.

That sounds like the definition of an imperfect market and a buying opportunity, assuming you truly believe its a "legit" company (and the valuation and financials make some level of sense of course).

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I was in the Feb 19 put options earlier in the week and closed the position. That profit was certainly modest compared to what I could have had holding on until today.

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When the initial hit piece came out the stock went from ~19 to sub 17 and my first thought was that this might be a good entry point. My decision to potentially enter into this stock was solely based on my stock broker's recommendation and a previous company audit by Deloitte and Touche. Instead of buying the stock outright I bought 15 Feb 19 calls for 75 cents per. This was purely a speculative play on my part. I got out at 55 cents per yesterday before the last bear raid around 12 pm. Those same Feb 19 are trading now between 10 and 15 cents per. I feel pretty happy that I preserved a good part of my speculative capital even though I lost money.

On the other hand you were on the right side of the trade with puts and made money. You're upset because you got out too early , however making money and I'm happy because I exited my long postion before the big crash yesterday but lost money nonetheless. I find that funny.

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CCME came public through a SPAC vehicle. The story is well known amongst value investors and everybody and their momma that conducts deep level diligence suspected it was a fraud.

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Could you please provide a few links with more detailed information?

TIA

Can we keep this updated? I would also like to know what "deep level due diligence" is. Do you just mean research, they really aren't the same thing. Auditu, since you obviously followed this, how do you think the recent accounting changes in china, and specifically in hk, have affected this story?

Read the company's filings dating back to the origination of China Media (through a SPAC vehicle as someone's pointed out). I'd bet my bottom dollar you'll find some shady stuff going on that the average investor wouldn't pick up on.

I completely agree. I think some of the legitimate IPOs/ADRs are severely undervalued just by virtue of being associated with these other turds. I would recommend only investing in those if you can stomach China.

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HK, by the way, is already a well-developed financial market, like ours.

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You don't say. I didn't realize it was a us listing, sorry. Can you answer the rest of my questions?