China MediaExpress: The Most Polarizing Stock in the World

Variant View Research submits:

Longs have called it "The Best Stock in the World". Shorts have accused it of being a brazen fraud that has overstated its revenue by many multiples. There have been accusations of forgery, fraud, and market manipulation coming from both sides. A quick look at the comments on the web reveal personal attacks, and people publishing the home addresses and photos of short sellers. This has become a dangerous and dirty game. One thing everyone can agree on is that CCME is one of the most polarizing stocks in the world.

Why is this stock so polarizing?

Reason #1: Whoever is right stands to make a lot of money - the stock is either grossly undervalued or overvalued, depending on whom you believe. People are taking oversized positions in the name. Both sides are "interested parties." I would advise all to not take anyone's word for anything here. People will lie to you to make money at your expense. Neither shorts nor longs have a monopoly on bad behavior, but clearly either the shorts or the longs must be correct. So the fact that someone has "bad" people on their side does not make them wrong.

Reason #2: Most investors are depending on others for due diligence. The reason for this is the language and distance barriers. Most US market participants lack fluency in Chinese and/or the ability to do proper due diligence in mainland ! China. T he result is that most investors cannot evaluate the other side's arguments on their

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