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China Mass Media Corp - CMM - WTF is going on?
Posted on 4/15/11 at 4:59 pm
Posted on 4/15/11 at 4:59 pm
LINK
I am hoping someone with more experience can help me out in this situation.
I bought a good bit of CMM back in late 2010, made some money, and then watched a lot of it disappear over the past few months.
Looking over the financial statements, earnings sheets, etc. it looks like a successfully run company on paper. Lots of cash on the balance sheet, mgt focused on profit, favorable demographics and industry...
I am not a genius and I might be missing something, but I don't understand how the price keeps going down when the company appears to be doing well?
:banghead:
Right now I have lost -37% on my investment. Is it worth it to ride this one out or should I just cut and run?
I am hoping someone with more experience can help me out in this situation.
I bought a good bit of CMM back in late 2010, made some money, and then watched a lot of it disappear over the past few months.
Looking over the financial statements, earnings sheets, etc. it looks like a successfully run company on paper. Lots of cash on the balance sheet, mgt focused on profit, favorable demographics and industry...
I am not a genius and I might be missing something, but I don't understand how the price keeps going down when the company appears to be doing well?
:banghead: Right now I have lost -37% on my investment. Is it worth it to ride this one out or should I just cut and run?
4
Posted on 4/15/11 at 5:01 pm to VolFanKT11
There has been a lot of scandal with Chinese equities being fraudulent.
I'm in a similar situation with a stock that should be ripping it apart, but isn't and one of my hedge fund friends told me that is why.
I'm in a similar situation with a stock that should be ripping it apart, but isn't and one of my hedge fund friends told me that is why.
Posted on 4/15/11 at 5:04 pm to TheHiddenFlask
so the pure speculation/suspicion is driving the price down?
Posted on 4/15/11 at 6:01 pm to VolFanKT11
I don't know anything about the stock in particular, just speculating on a reason.
Posted on 4/15/11 at 6:59 pm to TheHiddenFlask
quote:Hedge fund employees have friends???
one of my hedge fund friends told me that is why.
Posted on 4/15/11 at 9:34 pm to VolFanKT11
Chinese reverse merger stocks have been getting hammered.
Some short sellers have claimed that some of these are fraudulent. A couple of them have cut ties with their auditors.
There are claims that some of these reverse mergers are "shell" companies, and that they don't have real businesses.
I have no opinion as to whether these claims are true or false.
You can look at claims against some of these:
CAGC
YONG
CMFO
NEP
RINO
...and there are plenty more.
Many people have dumped their holdings and are sitting on the sidelines to see which company gets de-listed.
Your stock is probably in this basket. If it is, then you will have to determine if holding is worth the risk.
Some short sellers have claimed that some of these are fraudulent. A couple of them have cut ties with their auditors.
There are claims that some of these reverse mergers are "shell" companies, and that they don't have real businesses.
I have no opinion as to whether these claims are true or false.
You can look at claims against some of these:
CAGC
YONG
CMFO
NEP
RINO
...and there are plenty more.
Many people have dumped their holdings and are sitting on the sidelines to see which company gets de-listed.
Your stock is probably in this basket. If it is, then you will have to determine if holding is worth the risk.
Posted on 4/16/11 at 9:37 am to VolFanKT11
CMM is not an RTO. It's an ADR. It's shares were offered in 2008 w/ Merrill Lynch acting as lead. It doesn't make sense for it to be similarly effected by the RTO scandals as all of the other actual RTOs. Sure, a sinking tide across China as a whole may lower all ships, but the vast drop CMM has seen since December, I presume, has mainly been caused due to something else.
Out of the four possible categories, ADRs are the safest and have performed the best. Doesn't make sense that your stock would be effected hugely by the RTO stuff.
Out of the four possible categories, ADRs are the safest and have performed the best. Doesn't make sense that your stock would be effected hugely by the RTO stuff.
Posted on 4/16/11 at 9:47 am to VolFanKT11
Company's revs fell off a cliff Q over Q, Operating Income has decreased in each of the past 4 Qs, and NI has decreased in each of the past 4 Qs. There's your diagnosis.
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