Looks like yet another reverse merger China company is letting stuff hit the fan and splatter on naive/ignorant shareholders.
Not sure why it is so hard for some people to learn.

Specific to CCME, something that always bothered me using simple logic was their amazing ability to collect ARs at lightning speed even as they grew revenues like crazy.

Look at this from Yahoo page (see below link), shows revenues from Dec 2009 to Sept 2010 growing by over $100 million while Accts Receivs grew by less than $10 million!


http://finance.yahoo.c...

Now look at what their last quarterly said about ARs and you can see why there's reason to plug the nose:

" CME intends to maintain its current policies for collections of accounts receivable, which provide a 30-60-day credit period following the month in which the advertisements are displayed. "

How can a company with a policy of allowing a 30-60 day credit period on ARs collect them so efficiently as reported on their quarterly reports to show only $8+ mill in AR growth while revs grew by over $100 million in first 9 months of 2010?
That looks more like a 3-6 day credit period given their amazing ability to collect LOL, not 30-60 days.
Very fishy IMO.

Of course I'm using hindsight now that the bad news about auditor and CFO resigning is out on CCME but it shows how people can find problems with companies by using simple logic and looking beyond the income statement.

Most of these US-listed China reverse mergers have things that don't seem to look right to me once you get past the income statement and get into the more important balance sheet and cash flows.

Several non China companies too.

Maybe JBII.PK will give us the pleasure of uplisting so it can be shorted more meaningfully/readily (it also has several problems on the balance sheet and even the income statement IMO- they've lost a lot of the PIPE money they keep raising).

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