A Critical Failure in the Focus Media Story
In 2008, FMCN claimed business relationships with 27,164 theaters in urban China.
Data sources, web pages, and government websites report that the total number of urban theaters in China at that time was only 1,545.
“As of December 31, 2008, we had rights to lease advertising time on screens in 27,164 movie theaters in cities across China.” FMCN 2008 SEC 20-F -http://sec.gov/Archives/edgar/data/1330017/000095012309019102/h03455e20vf.htm
In China however the reports are that there were only 1,545 urban theaters at that time.
Google Translation: "Cities in Mainland China cinema line cinema 1545 currently, number of screens 4097" http://translate.google.com/#zh-CN|en|%E4%B8%AD%E5%9B%BD%E5%86%85%E5%9C%B0%E5%9F%8E%E5%B8%82%E7%94%B5%E5%BD%B1%E9%99%A2%E7%BA%BF%E7%9B%AE%E5%89%8D%E5%85%B1%E6%9C%89%E5%BD%B1%E9%99%A2%EF%BC%91%EF%BC%95%EF%BC%94%EF%BC%95%E5%AE%B6%EF%BC%8C%E9%93%B6%E5%B9%95%E6%95%B0%EF%BC%94%EF%BC%90%EF%BC%99%EF%BC%97%E5%9D%97
I paid for a Professional Translation:
"Cinema chains currently have 1545 movie theaters opened in cities in the Chinese mainland, with a total of 4097 screens."
A Critical Failure in the Focus Media Story, more detail: http://www.scribd.com/doc/78114133/A-Critical-Failure-in-the-Focus-Media-Story-FMCN
I am short FMCN.
SEC point made Nov. 15, 2010, filed in public Jan. 28, 2011:
"We note that the projected operating performance for your poster frame, movie theatre and billboard reporting units differed significantly from historical
performance for these operations and …" http://sec.gov/Archives/edgar/data/1330017/000000000011005758/filename1.pdf
why do you think they published this letter now?
Sounds to me like they followed thru on their threats to make their concerns known if they didn't get satisfactory answers to their questions.
To me it sounds like they are giving FMCN one last chance to try and right this before the hammer comes down.
Of course FMCN can't right this because the whole thing is likely a fraud.
What do you think of dividend?
Intuitively, strikes me as odd that a firm that couldn't afford cash to expand in the Jilin area a couple years ago is now awash in cash to buy shares and pay dividends.
Does FMCN file 10Q?
What I've seen of annual cash flow, sometimes positive, sometimes negative indicates they are in a shaky position to be paying a dividend or buying shares. Therefore, just sinking the ship faster. A good thing, but I would feel better if quarterly filings where available.
... and what of the revenue from a 27,000 member movie theater network that so far does not appear to have existed. ...and now many of the "LCD devices" are not liquid crystal display devices, but a business category with "LCD" as a title? Investors are satisfied with that? Can we trust anything downstream of FMCN claims? ... better to go upstream and compare the statements to the reality that underlies them.
The 2008 financial statements of fmcn has been verified by the auditor 4 years ago. Does it really matter that much whether the profit was from 2700 screens or 27K screens. Have you been shorting the stock since 2008. Remember nobody is listening to you. Get a life.
"Remember nobody is listening to you."
You refute yourself with the response.
"The 2008 financial statements of fmcn has been verified by the auditor 4 years ago."
>>Deloitte Shanghai Unit Ordered to U.S. Court in SEC Fraud Probe<<
"Judge orders Deloitte to respond in SEC case"
The most important part of any business is making money. It does not make any difference how many screens there is if they delivery the profit. It would be just a typo on sec filing or they have multiple advertisement screen in each theatre ie one in the lobby, one on each side of entrance etc. Why don't you call them up and ask them before you make a fool out of yourself. The best time to ask that question is during cc.
27,000 > 1,600
Math is its own language. "Explanations" to the contrary can be made, but they do not change the math.