Really? Your business model is selling TV ads on trains?
CCME’s business model was selling TV ads on monitors on buses. CNYD claims to have its fingers in several different lines of business, including selling “infomercial” time on trains. Now CCME’s auditor has resigned, questioning the accuracy of its bank statements, and its largest outside investor has filed a securities fraud suit against it. There are several other reports suggesting the whole company is a sham.
Parallels Between CNYD and CCME:
CCME: Chinese reverse merger stock
CNYD: Chinese reverse merger stock
CCME: Claims huge profits and growth selling ads on buses
CNYD: Claims huge profits and growth selling ads on trains
CCME: Recommended by disgraced Chinese stock promoter Ping Luo
CNYD: Recommended by disgraced Chinese stock promoter Ping Luo
The media business did about $10 million in revenues last quarter. Of that only 15% were from the train business. This story is going to get better as Yungding park starts to see more visitors. The company believes that Yungding park will have more visitors than Great Golden Lake in 2012. It is sad that the company experienced the worst flood in 300 years. Otherwise the earnings would have been about $2.00 for 2011. I am going to average down on this stock. Who knows where the bottom is, however the company will have $3 in earnings power in a couple of years and close to $25 per share in real estate on the books.