{ "docId": "019dd923-622c-750b-8b95-d3ebbc2ca587", "docSlug": "2d65bb084b06", "documentTitle": "China MediaExpress Holdings (CCME)", "authorId": "51_Muddy_Waters", "authorName": "Carson C. Block", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2011-03-02 00:00:00", "orientation": "portrait", "aspectRatio": 0.7070758, "pageNumber": 28, "pageCount": 33, "prevPage": 27, "nextPage": 29, "slideType": "preempt_rebuttal", "function": "preempt_rebuttal", "density": "dense", "nDataPoints": 1, "notes": "This is a text-heavy rebuttal slide responding to a short-seller report (Muddy Waters).", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b95-d3ebbc2ca587/28", "deckHref": "/decks/019dd923-622c-750b-8b95-d3ebbc2ca587", "deckJsonHref": "/decks/019dd923-622c-750b-8b95-d3ebbc2ca587.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-d3ebbc2ca587#slide-28", "components": [ { "bbox": null, "kind": "callout", "text": "THE COMPANY CATEGORICALLY DENIES THE ALLEGATIONS MADE IN THESE PUBLICATIONS.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-f5d0-745c-bebc-98fdb304b7ec", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.7, "x": 0.15, "y": 0.68 }, "kind": "list", "text": "ALLEGATION: The media kit obtained from CCME’s sales personnel indicates that CCME has less than half of the buses under contract compared to CCME representations. FACT: As of today, the Company currently has 27,200 buses under contract, and in addition to our regular monthly independent audit and verification by CTR Market Research – which we perform for the benefit of our agents and customers -- we will engage a professional third party to verify that fact. Although Muddy Waters claims to base its attack on our own advertising kit, and has appended to its “report” some spread sheets that Muddy Waters claims to come from our kit, that simply is not the case. The spread sheets on which Muddy Waters purports to rely (a) do not look like ours, (b) are not in the same format as ours, (c) appear to have been authored by", "attrs": null, "subkind": "comparison", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "04b3afbf-4ab3-4272-b05b-b4b19e68ae46", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.7, "x": 0.15, "y": 0.58 }, "kind": "list", "text": "ALLEGATION: The Company is a fraud and reported revenue is exaggerated by tens of millions of dollars. FACT: The Company is strong and doing well. Its revenues and cash position have been audited by reputable and well-known auditors who have confirmed both.", "attrs": null, "subkind": "comparison", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7cbec26f-4de5-4b82-989d-64ed2920e119", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.7, "x": 0.15, "y": 0.35 }, "kind": "paragraph", "text": "The Company will actively resist the efforts of these short sellers. First and foremost, THE COMPANY CATEGORICALLY DENIES THE ALLEGATIONS MADE IN THESE PUBLICATIONS. We address below the most significant claims made in these materials – all of which contain large factual errors. To the extent it is necessary, we will provide a more comprehensive response at the appropriate time.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "04fb8e45-0b39-431b-8fd4-15b9e683fb37", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.7, "x": 0.15, "y": 0.09 }, "kind": "paragraph", "text": "efforts plays into their ultimate strategy. By using the anonymity of the internet and publicizing as many unfounded allegations as they can craft, they can make it look as if there is a ground swell of criticism against the Company when in reality all the claims emerge from a small group of self-interested parties. Their ultimate plan is not a complicated one. As long as they can drive down the stock price when the U.S. markets are open (even if there is a holiday in China) and then cover their short position cheaply and quickly, they have accomplished their goal. It does not take long for them to make a profit at the expense of the company and other shareholders, particularly, if allegations are made while businesses in China are closed.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7d97b8b1-294c-41a0-b6c3-cd28640a98fe", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.7, "x": 0.15, "y": 0.48 }, "kind": "paragraph", "text": "We also note that the attacks are continuing and we fully expect to continue to have to take appropriate countermeasures.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e7e12143-dad4-4996-a536-d2fefcbef5a6", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "THE COMPANY CATEGORICALLY DENIES THE ALLEGATIONS MADE IN THESE PUBLICATIONS. — China MediaExpress Holdings", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-f5d0-745c-bebc-9f1c13b749a3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.7, "x": 0.15, "y": 0.53 }, "kind": "title", "text": "Important Examples of the Bloggers' Factual Inaccuracies and Misleading Tactics", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "83dd645c-fd18-4a80-a9e8-8ce59e73109c", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "preempt_rebuttal", "slug": null, "matchId": "a33e3376-e6c4-44e4-bc1f-8e3bfb08b03f", "evidence": "Directly addresses and refutes specific allegations from a third party.", "confidence": 0.9 } ], "arcBeats": [ { "to": 32, "from": 27, "beatId": "702dd309-c5e0-492d-be7b-b31618225613", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Preempt Rebuttal", "beatSlug": null, "evidence": "The document preempts rebuttals from CCME and addresses potential counterarguments", "position": 2, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [ { "to": 29, "from": 23, "name": "The Reveal", "slug": "05-the-reveal", "bestFor": "Product launches, strategic pivots, unexpected findings", "matchId": "1792253a-511a-4091-86da-2048375b7e26", "evidence": "The document presents evidence of discrepancies in CCME's advertising kit", "position": 1, "objective": "to reveal the discrepancies in CCME's advertising kit", "structure": "Setup the Question -> Build Suspense -> The Big Reveal", "confidence": 0.6, "description": "Build mystery and anticipation, then deliver a surprising or powerful conclusion" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }