Are you claiming that all professionals are conflicted while you're as pure as the snow is white (and, by extension, every investor sell FMCN)? Each investor has to do his or her own due diligence; however, since you are an admitted amateur short seller, your criticism of the Goldman analysts' objectivity is a laughable case of the pot calling the kettle black. I'll post a few other analyst remarks, though I'm sure you'll claim they're all in on the conspiracy (lol).
Bank of Amrica/Merrill note. As you may recall, they suspended coverage in the wake of MW's allegations. On 12/7/2011, they resumed coverage and issued the following report ...
Coverage Resumed: BUY Equity | China | Advertising & Marketing Services 07 December 2011 FMCN
Core business model remains sound; Resume at Buy
We resume coverage of FMCN with a Buy rating based on our estimates for the cash generating capabilities of its core commercial network and reduced focus on large scale acquisitions since 2009. We point out that these were also the key reasons behind the upgrades in our rating in December 2009 (from Underperform to Neutral) and May 2010 (from Neutral to Buy) after most of the disposals of its value-destructive acquisitions in 2006-08 were completed.
We use a primarily DCF-based PO, including US$0.50 from its 15% stake in VISN and a DCF valuation of US$33.50 (discount rate of 11pct, medium-term 13-15E FCF CAGR of 20%, and terminal growth of 1%), to better capture any major cash outflows related to acquisitions. P/E-based valuation may give credit to earnings brought from acquired business but in our view overlook the impact of cash outflows in acquisitions. Our valuation is based on fundamental cash flows of ongoing business, and does not rely on anymore disposal value of the noncore business nor market sentiment. We expect the release of a positive independent audit report on LCD screens, no further major acquisitions and continuous delivery of cash flows from the core business in the upcoming quarterly results to improve investor confidence in the current financial condition of the company and to reduce the overhang issue.
We set out below the company’s response to the principal allegations made by MW in its report and our view on the matters that are the subject of the allegations.