{
  "docId": "019dd923-622c-750b-8b95-e976ef3dfa16",
  "docSlug": "7f8b05d541c7",
  "documentTitle": "Focus Media Holding Ltd. (FMCN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2011-11-21 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.7070758,
  "pageNumber": 26,
  "pageCount": 80,
  "prevPage": 25,
  "nextPage": 27,
  "slideType": "appendix_data",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 42,
  "notes": "Includes specific allegations of fraud and SEC inquiries regarding insider transactions.",
  "elementsJson": [
    "paragraph",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b95-e976ef3dfa16/26",
  "deckHref": "/decks/019dd923-622c-750b-8b95-e976ef3dfa16",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b95-e976ef3dfa16.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-e976ef3dfa16#slide-26",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The insiders who sold to Silver Lake received 5.7x on their investments in only seven months, which is an annualized IRR of 2,127.2%.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-14d7-73fd-9f5b-fc9ecaa3ddd3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Annualized IRR: 2,127.2%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-14d7-73fd-9f5c-026facad8004",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.72,
        "x": 0.14,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "James Jian Zhang is a very curious participant. He was previously the chairman of Duoyuan Printing Inc.'s audit committee. (OTC: DYNP.PK) DYNP was de-listed amid suspicions of fraud. Muddy Waters exposed its sister company, Duoyuan Global Water, Inc. as a fraud on April 4, 2011.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "730dce50-bfab-4049-bb1e-9ae75bbbfc43",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.72,
        "x": 0.14,
        "y": 0.68
      },
      "kind": "paragraph",
      "text": "One of the questions remaining is: Who held onto their stakes? Assuming that the insiders did not sell partial stakes, then there are a maximum of three possible combinations of remaining shareholders.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "82fcb2d5-410c-4b5d-9f0c-1e9077b1408b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.72,
        "x": 0.14,
        "y": 0.31
      },
      "kind": "paragraph",
      "text": "On August 3rd, 2010, Silver Lake Partners acquired 90.8% of Allyes for a total of $181.0 million. The insiders who sold to Silver Lake received 5.7x on their investments in only seven months, which is an annualized IRR of 2,127.2%.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "94e75bb0-adf6-483a-a848-b24445eeaaf0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.72,
        "x": 0.14,
        "y": 0.64
      },
      "kind": "source-note",
      "text": "(1) We were unable to locate a Topnoch or Topnotch Investments Holdings in the BVI companies registry.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "43227af3-196b-44d2-9382-a6841b2f62d9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.72,
        "x": 0.14,
        "y": 0.85
      },
      "kind": "source-note",
      "text": "80-83 footnotes with URLs to Muddy Waters and SEC documents.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "829928f5-9cee-40e7-8c27-a30cc761b7a5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.72,
        "x": 0.14,
        "y": 0.49
      },
      "kind": "table",
      "text": "Allyes Trade III (US$ 000s) table showing Insider, Entity Name, % of Allyes, Basis, Implied Sale, Net Profit, and Ann. IRR%",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5bf49c2b-2371-4158-8df3-a6c9951752b6",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "33dba6f9-ad47-4176-bbfa-3aac03582148",
      "evidence": "Analysis of insider trading and historical fraud associations",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 40,
      "from": 21,
      "beatId": "8edd255c-a0e6-4fcc-ada5-3e6d73dc2fae",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "The report presents evidence of insider enrichment and potential fraud",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 30,
      "from": 20,
      "name": "Iceberg",
      "slug": "10-iceberg",
      "bestFor": "Consulting, complex problem solving, organizational change",
      "matchId": "d98dd234-8e56-41fa-8226-021a360890ff",
      "evidence": "The report presents evidence of insider enrichment and potential misrepresentation",
      "position": 1,
      "objective": "Revealing the true nature of FMCN's financial transactions",
      "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause",
      "confidence": 0.7,
      "description": "Reveal that the visible problem is merely a symptom of a deeper root cause"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}