Good grief, EPS (fully diluted) of $1.81 and guidance of almost double this year's net income for 2010 and that excludes accretive acquisitions.
Due diligence on some? or All? I understand where you are coming from. And there will certainly be land mines, which is why many of these stocks trade a multiples’ of 3 to 5 x EPS. Chop Shops is pretty strong language. Sure, a website is important for presentation purposes. But I am more interested in the company and who the U.S. IR firm is. I remember an excerpt from the Peter Lynch book: One Up on Wall Street where he basically said the prettier the annual report the less he was interested. As time evolves reporting and disclosure will improve. The related party situation is just a common characteristic you need accept when dealing with Chinese firms. I agree that more over risk disclosure on this sector may be appropriate.
GeoInvestng in not a penny stock pump and dump site as you imply. Many may have started as Penny stocks. Maybe you should complete your DD and check out the performance of stocks in this sector. Also, if you search hard enough the site covers U.S. stocks too.
You choose to take a half glass empty approach. I take a half glass full approach.
The questions you ask about CCME can be asked about any two divergent companies in the same industry.
You need to read this book: good to great. Some companies just get it right.
My point was that people are buying into a company with no history.
In USA where there are supposedly more regulations and accounting restrictions, there are still so many companies playing shenanigans that we can only imagine how a country like China, well known for its corruption, can let companies to fudge their numbers.
Buyers beware when things are too good to be true. You can make a bundle in a short time and the opposite also.
you are not open to the world. The past reports did not contain any information about ChinaMedia Express, since it was not merged into the SPAC yet. Do you even know what a SPAC is?
Press Release Source: China MediaExpress Holdings, Inc. On Tuesday December 29, 2009, 9:38 am EST
FUJIAN, China--(BUSINESS WIRE)--China MediaExpress Holdings, Inc. (NYSE Amex: CCME; CCME.U; CCME.WS) (“CME” or “Company”), China’s largest television advertising operator on inter-city express buses, today announced that the Securities and Exchange Commission ("SEC") has declared effective its S-3 registration statement that registers, among other things, the common shares underlying warrants issued in the initial public offering of TM Entertainment and Media, Inc. (“TMI”, CME’s name prior to its recent business combination) and certain shares held by the founders of TMI.
This is what you should have been looking for:
Took me all of about 1 minute looking through your link to find this:
"At September 30, 2009, the Company had not yet commenced any operations. All activity through September 30, 2009 relates to the Company’s formation and the public offering (the “Offering”) described below, and activities relating to identifying and evaluating prospective acquisition candidates and is subject to the risks associated with activities of development stage companies. The Company has selected December 31 as its fiscal year-end."
What your looking at are the financials related to the shell company the CCME was backed into.
CCME's numbers speak for themself. Obviously your calculator doesn't work. No one even knows about CCME yet, as this was their first earnings report ever since leaving the SPAC shell. They just blew away estimates and guided for organic net income growth of nearly 100% for 2010. Call it a boiler room or whatever. I call it making a killing with a ton of upside left.
Well with EPS of $1.81 (fully diluted) on $41.7 million in net income with guidance of net income of $71 million to $75 million in 2010 (not including accretive acquisitions) ..... heck no, you haven't missed a thing. This company just broke out from its SPAC status and now their earnings will be updated on Google Finance and all the other sites. They have about $100 million in cash and no debt and are growing like a weed. If you don't own CCME then there's no reason to own any stock.
Institutions will now flock to CCME, as they just emerged as the metric to follow in their industry.