glassbox

Focus Media: Will Massive Accounts Receivable Lead to a Future Write-Down?

Wouldn't it be more useful to look at AR in days over the last 8 quarters rather than AR/Revenue?

Focus Media: Short Squeeze Developing?

Yes, it would be even more interesting if we knew who the shorters of these stocks were. Just like we know who are long. There should be disclosure standards on the stocks - just like there are disclosure standards required for those who are major shareholders or sitting in managmenet. The whole system for stock lending and shorting is completely flawed in disclosure and this has resulted in a asymmetric information gap - which is obviously just by itself presents a good opportunity to make some money, under cover.

Punter, you are right in asking who these 'well informed' parties could be - I think anyone who is trading this stock should have a right to have access to that information.

FSA recently required disclosure of those holding short positions with the view to find out who had deliberately depressed stock prices in the event of a rights issues. I think to be fair to every one out there - this inbalance must be corrected.



On Jul 02 11:38 AM Punter wrote:

> It is fascinating that the short interest is so big. The analysts
> have been bullish all the way down from the peak. This is a huge
> short interest, and somebody clearly thinks they know something that
> the street doesn't know. If there is a time bomb ticking here, it
> is the Dec 2007 under the radar screen announcement that China would
> require licenses to operate these outdoor media networks. At the
> same time, nobody knows how to apply for these licenses. I am not
> aware, though honestly I havent checked, whether Focus has the onshore/offshore
> holding structure that can at least accomdodate issuance of a license
> to a PRC entity.
>
> I would guess that well informed parties lie behind such a huge short
> interest, because the street clearly isn't looking at the headline
> numbers on this stock. Somebody is clearly betting big that this
> time bomb is indeed going to explode.