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Direct Markets Holdings Corp. Message Board

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  • fabulouspoodle fabulouspoodle May 3, 2011 1:27 PM Flag

    does anyone have any idea...

    hey hopeful, I havent listened to the cc...I'd like to know if they addressed their China reverse merger situation.

    Also, if they are still holding warrants related to the China RM's they assisted, they probably have another qtr of warrant losses ahead.

    Anyway, here's what I said a month ago on this board about RODM, and I guess it still holds:

    "I think their are two reasons why RODM is being sold at these low levels.

    First of all, while as you state, RODM is not a Chinese company, one of its main businesses has been taking china small caps public through the reverse merger route...and then covering them. Many of these companies have been found to have funky business/accounting practices, and some have been delisted to the pinks, while others are in the midst of trading halts. RODM assisted some in going public, and initiated coverage on some. Even the ones that may not be fraudalent have seen their share price decimated. The SEC has stated that they are beginning to investigate the China stocks that have gone public via the reverse merger route.

    The above may not have any direct consequence on RODM, although they probably own some stock in the ones they took public. However, its possible that RODM may eventually be involved in lawsuits by shareholders...whether they are culpable or not, I cant say.

    Also, the portion of RODM's biz related to taking China companies public, covering them, and managing follow on offerings (or other offerings) should be in sharp decline going forward as the sector has been put under the microscope.

    RODM's definitely a tremendous value without the above mentioned crap....and it may be a good one even with it. But thas why its being sold."


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    • Fab,
      Thanks. You certainly make the case for the struggling price. Holding RODM, for me, rather goes against my actions to avoid Chinese companies, for sure. I also believe there is value here too. I guess maybe it's simply too hard to measure that value closely under the circumstances, though, and there are participants more than willing to profit off of that uncertainty relative to the difficulty of measuring what's real and what's not.

      • 1 Reply to hopeful200
      • Bottom line is that it is becoming more and more painfully obvious that management is only good at maintaining / increasing comp levels.... actually creating shareholder value, not so much!

        I have been following and invested in this company for far too long. At every turn they do not fail to dissapoint, in my opinion, of course.

        Good luck to anyone out there who is actually long on this stock, since I don't think management is either capable of, or really wants to help in this regard.

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