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Muddy Waters Repeats Himself (if You’re Not Really Paying Attention)

|Includes: Focus Media Holding Limited (FMCN)

Despite the progress of the debate, which is basically:


FMCN: We have 180,000 lcd displays.

Short: But you told your customers you had less than that?

FMCN: You forgot to count the LCD 1.0 picture frame devices. To clear this up we've just amended our SEC filings.

Short: OK, I just looked through your convoluted filings and put it all together. You yourself state that these "LCD 1.0" frames do not use Liquid Crystal technology. They don't even use electricity. They're cardboard. This means that your recent "Independent verification" confirms that the prior LCD count was indeed inflated. You have refuted … yourself.


While the rest of us are awaiting the FMCN response to the recent progress in the debate, in steps a reporter today ...

"[MW] largely repeats allegations in previous reports over the past three months that the digital media company overstated the number of screens in its LCD network and deliberately overpaid for acquisitions." (Here)

Repeats? If you cherry pick the nouns out of a rational argument, you can stop the progress of rational thought and conclude a "repetition." (IE, "repetition" as experienced privately by someone who isn't really paying close attention. )

"The company has repeatedly refuted Mr. Block's claims..."

Where? With what facts? The company's recent responses have refuted their own prior claims.The proof of inflated LCD counts has been provided by the company's latest amended 20-F filings and the independent verification. This entire point has been lost.

FMCN then vs. FMCN now: We said "Liquid Crystal Displays" but these are really cardboard poster frames.

FMCN then vs. FMCN now: We said "Theaters" but these are really advertising purchases.

It comes as no small surprise that the general public does not understand the true meaning of the word "refute" ... but I take a step back when a published article does not rise above this norm.

LCD count:
Theater count:

Disclosure: I am short FMCN.