China MediaExpress Holdings: Investors Crushed in Rush for the Exit

Robert Weinstein submits:

Without deception you cannot carry out strategy, without strategy you cannot control the opponent.
-- Sun Tsu, The Art of War

China Media Express Holdings, Inc. (CCME), the $409M market cap China bus advertising company, lost over 30% of its valuation today. I have been told that there are no coincidences on Wall Street. If that is true, one would ask oneself, why did Muddy Waters Research and Citron Research just happen to issue negative press releases so close to each other? I also might mention it is the Chinese New Year right now (the biggest holiday in China) making it difficult and inconvenient to prove or disprove the reports.

Click to enlarge

First to claim fraud was Citron research, which issued a scorching review of CCME a few days ago. As someone who shorts over 90% of my trades, I am always on the lookout for a company that is overvalued and expected to fall. I am currently short Borders (BGP) after news of the expected bankruptcy hit the wire. I went short Manitowoc (MTW) and Unisys (UIS) last night (covered both and then re-shorted MTW into the close today). Therefore, ! I am ver y comfortable shorting strong and weak stocks.

I pulled up the chart to look at CCME and realized that I had shorted it just a few days ago. This time was different as it was selling off fast and hard compared to running up fast. I traded CCME today to the long side. While trading and


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