China MediaExpress Holdings, Inc. (CCME) takes another modest leg lower during the Monday trading session. The weakness being attributed to an article by CitronResearch where CCME is mentioned cautiously.
According to Citron, China MediaExpress Inc claims it has grown faster and produced more cash flow than any other U.S. listed Chinese Media company over the last 4 years, generating even more profit than giant Focus Media Holding Ltd. (FMCN) and outpacing all of their competition by a landslide despite their smaller footprint. There is only one problem however with this scenario: “No One in China Has Ever Heard of Them.”
Citron Research essentially calls the company a fraud, saying it’s their opinion that “if this company were operating in the United States, the stock would have buckled long-ago over the lack of transparency in its story.”
At last check, CCME was down $1.07, or 5.13%, to $19.79. The stock closed at $20.86 on Friday.