Let the short squeeze begin! Again.
http://www.nasdaqtrader.com/trader.aspx?id=regshothreshold
If you’re like me and you like stocks, you probably get a lot of phone calls/messages about people that missed a buying opportunity and wonder if it is still a good time to buy. For CCME, I have a friend who keeps asking me on a daily basis what I think about it. So far, he’s missed out on tens of thousands of dollars by simply not buying any. This particular friend keeps asking me if he should buy. I keep telling him that he should. He continues to do nothing. This is a message to anyone out there who is wondering if they should buy CCME. Oh, and with CCME on the RegSHO list, now the shorts HAVE to start buying back. How fantastic is that?
Seekingalpha keeps retitling my articles to make them sound more reasonable than the titles I send in. There recently have been two authors who have painted very rosy pictures of CCME and in my opinion analysts’ estimates are still far too low.
Is China Media Express a Top Tier Company? You Decide
China MediaExpress: The Most Undervalued Stock Poised to Profit From China’s Emerging Middle Class
Company estimates and forecasts are still far too low. Everyone is being unreasonably picky. Anyone in the know knows this and I still find myself laughing when CCME drops and I’m able to buy more at lower prices. China Media Express is one of those stocks that people will reflect on and use phrases like, “Shoulda, Woulda, Coulda.”
I’m here to say, you should, you might as well, and you can. Honestly, my discounted cash flow valuations value CCME north of $100. Are my models reasonable? I’m using them to price the Dow Jones Industrial Average and for the most part I’m borrowing them from Ben Graham and Peter Lynch.
I still don’t understand why on a nominal basis CCME should be trading less than Focus Media (FMCN). Because that doesn’t make sense to me, I have purchased a lot of CCME. When things don’t make sense, I vote with dollars in the direction that things make the most sense to head.
I love that this space is gaining so much negative attention recently that people are starting to blog on things that they don’t really know much about:
Reverse Mergers: Made in China, Worthless in the U.S. It’s the same old story. Hear something bad, restate it somewhere else. That’s the beauty of how easy it is to become an expert on pretty much anything. Sure, you could be wrong, but it doesn’t really matter because you’re not putting your money where your mouth is. Also, nobody is going to hold it against you if you were. Sure, there’s fraud. Sure, china is building things at an unsustainable rate. But you have to realize that negativity is more attractive than optimism and that there is a lot of money on the line betting short, and they have a vested interest in making investors question the soundness of their long investments. I for one love the shorts as they enable me to get bargain bin prices on some great finds like CCME.
I think that once the large shorts out there start to realize that this Chinese Microcap space isn’t as littered with fraud as they think it is, mostly this realization forced upon them because they’ll soon find themselves with margin calls on bets that they’ve kept upping the anti hoping that things will eventually trend in their favor, things will really start to get juicy. What do you know, maybe a company growing over 30% might actually have a price tag that reflects something like that?