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  "documentTitle": "Focus Media Holding Ltd. (FMCN)",
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  "authorName": "Muddy Waters",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2012-02-09 00:00:00",
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      "text": "Note: You should assume we have a short position in FMCN as of this report – prior to reading this report see important disclaimer on the last page (page 9).",
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      "text": "In our November 21, 2011 report on FMCN, we accused management of fraudulently overstating the size of its LCD Network. FMCN had previously defined the LCD Network as a “network of flat-panel television displays.” FMCN first vehemently denied our charges that it overstated the LCD Network size, and then independently “verified” that its previously reported number of 185,174 LCD Network displays was correct.",
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      "text": "Independent “verification” proves Muddy Waters was correct when we concluded FMCN lied about the size of its LCD Commercial Display Network. In order for FMCN to meet its disclosed numbers, it had to include approximately 30,500 cardboard posters in its LCD display network count. In other words, per FMCN’s own verified data, over 15% of FMCN’s LCD network consists not of LCDs – but of cardboard.",
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      "text": "FMCN’s prior disclosures on its network make no allowance for cardboard displays. FMCN wrote the following in its 2007, 2008, 2009, and 2010 20-Fs:",
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      "text": "However, over 30,500 of those “verified” displays are not LCD televisions at all – rather, they are mere cardboard posters. Not only does this mean that FMCN management was brazenly lying to investors in the wake of our report, but the lies sharply call into question the veracity of FMCN’s reported financials. We estimate that each LCD television generates monthly revenue seven times that of a cardboard poster.",
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      "text": "The implication for investors is that if the inputs to the financials (network sizes) are lies, then why wouldn’t the outputs (revenue and profit) also be lies? As the old saying goes, “garbage in, garbage out.”",
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      "text": "Separately, on November 29, 2011 we pointed out that FMCN had previously grossly lied about the size of its movie theater advertising network. FMCN’s recent attempt to explain away that lie is almost as ridiculous as its conflation of cardboard with LCDs.",
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      "text": "1 2010 20-F pp. 38-9, 2009 20-F p. 36, 2008 20-F p. 35, 2007 20-F p.33.",
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      "text": "Muddy Waters was Right All Along",
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      "text": "FMCN: Reiterating Strong Sell Muddy Waters, LLC February 9, 2012",
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      "text": "Muddy Waters was Right about FMCN's LCD Network Overstatement; Independent Verification Counted Cardboard Posters Instead of LCDs Weak Attempt at Jedi Mind Trick Exposed",
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