China MediaExpress (CCME) Falls On Negative Citron Report
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China MediaExpress Holdings, Inc. (Nasdaq: CCME) shares are showing some weakness today, following a report from Citron Research which is a little cautious on the shares. CCME is 6.4% this afternoon.
Citron notes that China Media Express operates a simple model, being the "largest television advertising operator on inter-city buses and airport express buses in China." Continuing, the company alleges that their sales have grown from $2 million four years ago to $85 million expected in FY11. "Over the last 8 quarters, CCME reported generating $95 million of cash flow after all CAPEX and for-cash acquisitions. If true, this ROI would be one of the highest in the world, and a complete outlier in the Chinese advertising market."
Citron contends that "No one in China has ever heard of them. It is Citron’s opinion that if this company were operating in the United States, the stock would have buckled long-ago over the lack of transparency in its story."
Click here to read more from Citron about this "phantom company."
Citron notes that China Media Express operates a simple model, being the "largest television advertising operator on inter-city buses and airport express buses in China." Continuing, the company alleges that their sales have grown from $2 million four years ago to $85 million expected in FY11. "Over the last 8 quarters, CCME reported generating $95 million of cash flow after all CAPEX and for-cash acquisitions. If true, this ROI would be one of the highest in the world, and a complete outlier in the Chinese advertising market."
Citron contends that "No one in China has ever heard of them. It is Citron’s opinion that if this company were operating in the United States, the stock would have buckled long-ago over the lack of transparency in its story."
Click here to read more from Citron about this "phantom company."
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