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Chimin Sang
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I don't typically talk about my long positions but I do talk about the stocks that I either don't like or do not like enough.
  • Red Flags At China MediaExpress: Article Published After Dispute 8 comments
    Feb 16, 2011 10:59 PM | about stocks: CCME
    The original article on CCME's SAIC/SAT mismatch with SEC filings has been revised and accepted by Seeking Alpha editors as article.  

    Red Flags at China MediaExpress: Significantly Mismatched Filings in China, U.S.

    The revised article has no mentioning of SAT documents not because I do not trust its numbers but because it was not obtained through the formal channel and thus lacked proper seals. This is as close as we can get to the CCME SAT document to date. 

    Several points:
    1. I trust the source where I got the information from.
    2. The numbers match SAIC documents I obtained from a separate reliable source, Qingdao Inter-Credit. 
    3. The formats of the documents make me believe that they are not forged. A forger will need a lot of imagination and solid knowledge to have them in somewhat different formats. A typical forger will produce three forms with similar format and would never make that 2008 mistake. 
    4. The documents were pulled from the SAT electronic storage, and are thus without seals. There is no good explanation to me for the "2008" error, but my source did tell me the problem in the very beginning and we present the documents the way we obtained it regardless.
    Anyone who would like to base their decision on verifiable documents can safely choose to ignore the SAT documents. 

    Anyone who would like to blame the documents being forged should complain to SAT and SEC. 

    Anyone who would like to question the authenticity of SAIC reports should ask the company to provide them a copy, especially for those who are long CCME. Since you are the owner of this company, you have rights to know the truth of what you own. The management has hinted in their open letter that their SAIC report does not agree with the SEC report. It surprises me that you are not interested in knowing at least by what order of magnitude these two filings differ. 

    Anyone who could not get proper response from the company, would like to know the truth and is not short of cash should ask for their own copy of SAIC report from Qingdao Inter-Credit for $250. The contact information can be found here. The people there understand English and are very efficient in providing you with professional service.

    A complete and untranslated copy of SAIC report I purchased from Qingdao Inter-Credit is available FREE for you here

    Anyone who do not trust Qingdao Inter-Credit can charter a lawyer at Fuzhou to obtain the SAIC report. According to Chinese law, any lawyer can obtain the SAIC report from the local SAIC bureau with his/her proper license presented. 

    Anyone who do not want to follow any of my suggestion above can certainly hold your shares and bet your future with CCME. I am not against your decision but I take the opposite side of your bet. 

    Final words to the long of CCME who are seeking some truth

    The sites that you longs aggregate into, such as ccme-info.xanga or your investorshub site, are merely your own biased club. For instance, bullmarkets asked you to refer to them for facts and truth (link) and yet he is deleting information on the boards that questions the legitimacy of CCME. Here is the proof.
    Some messages have been removed. If anyone needs anything more removed, please let me know. 
    In particular, he removed posts of rantobranco, who started to believe things were wrong with CCME, sold out his shares and explicitly complained that the investorshub did not entertain opposite opinions which did not help one to make rational investment decisions which require very sane mind.

    Money is yours and decision is yours. You may want to believe that Deloitte and Starr International are not likely to make mistake, but shorts also know these as well as you do, and yet they are willing to make the bet against you!

    Themes: China, China Media, Fraud, Short Ideas Stocks: CCME
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Comments (8)
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  • Annonymous-2011
    , contributor
    Comments (2) | Send Message
     
    What is the source of SAT documents?
    16 Feb 2011, 11:49 PM Reply Like
  • Drexion
    , contributor
    Comments (72) | Send Message
     
    Chimin, why don't you inquire of RatoBranco if he is long CCME as of this moment or not. You might be surprised by his answer *chuckle*.

     

    Regarding the SAIC, you might want to inquire with a Chinese lawyer as to the reliability of SAIC documents for a VIE structure. As you may note, the financials on the SAIC filing for CCME are not even audited.

     

    -Fernando
    17 Feb 2011, 12:00 AM Reply Like
  • gokou3
    , contributor
    Comments (110) | Send Message
     
    Chimin,

     

    If I have read it correctly, the 2009 SAIC filngs show revenues of RMB5.18M. YOUR other posts show CCME has 10k+ buses (or whatever number you want to make up, as oppose to the company's claim of 27k).

     

    Does it make sense that each bus rakes in only RMB$518 of revenues? Not me. Does it occur to you that you have got the filings of the wrong subsidiary? It occurs to me you did.
    17 Feb 2011, 02:52 AM Reply Like
  • zorrba
    , contributor
    Comments (430) | Send Message
     
    OK let's just assume this guy is Adolph Hitler for his past and look at the claim anyways, because at some point it has to be about WHAT not WHO.

     

    FACTS:
    A) The SAIC report demonstrably shows no advertiser license for Shanghai Apollo -even though it's owner claims it is on it's website.
    This was supposed to be a prized "client" of CCME?.

     

    B) Apollo's revenue dropped about 77% from 2007 to 2008
    AND went into a black hole for 2009 - ZERO SAIC report.. **THAT** is the ONLY company that CCME invites to investor day???
    Doesn't pass the smell test. Just like Hank Greenberg getting $42 million worth of stocks and warrants from CCME for only $30 Million when the company books indicated the cash was not needed. Hanky goes to Hollywood.

     

    Let's get beyond the "who" said it. Can someone comment on these "facts"?
    17 Feb 2011, 02:58 AM Reply Like
  • gokou3
    , contributor
    Comments (110) | Send Message
     
    Also, note that in the CCME presentation in which you provide a link for in your other instablog (www.allchina.cn/exchan...), it shows that the presentation was created by a subsidiary named 青岛高速文化传媒有限公司 (Qingdao High-speed Cultural Media Co., Ltd). Apparently your SAIC document is for company 福建分众传媒有限公司 and doesn't contain revenues from this other subsidiary of CCME?
    17 Feb 2011, 03:13 AM Reply Like
  • gunnar
    , contributor
    Comments (66) | Send Message
     
    In about 3 weeks all these amateur detective games will be settled. What will you do then, how will you 'google' your way out of it? Unlike your friends Andrew and Carson, you haven't protected yourself with a broad disclaimer.
    17 Feb 2011, 03:41 AM Reply Like
  • Marty Chilberg
    , contributor
    Comments (461) | Send Message
     
    Readers should read independent research without positional bias
    ghsecurities.bluematri...@ghsecurities.com&...
    17 Feb 2011, 09:50 AM Reply Like
  • wctbills
    , contributor
    Comments (11) | Send Message
     
    Chimin, biased or not, I do provide better data at ccme-info.xanga.com that are first-hand and I can stand by them.

     

    I think you need to make your case stronger by contacting the company or getting documents that you can stand behind 100%. Otherwise, you shouldn't publish it, draw conclusions from it, then can't stand behind it 100%, and end up discrediting yourself.
    28 Feb 2011, 12:57 AM Reply Like
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