Exposure to China: How to Play It Safe

Microcap Speculator submits: China Media Express (CCME) was one of the original stocks in my China microcap stock basket. It was also one I felt held great promise, though as I noted in late January I took profits so I no longer hold shares. That was just selling into a spike — my active trading demands that I consistently hit sharp runups.

Microcap Speculator submits: Take a dozen microcaps, and one of them will likely to turn out to be a fraud. For Chinese microcaps, the odds are probably double. That's why I spread my Chinese microcap stock positions over a basket of a dozen or more stocks (I trade them actively so the number tends to vary from 12-20).

I’m sure most of the trading community is familiar with a Chinese advertising co called China MediaExpress Holdings (NASDAQ:CCME). The company has been under attack by several short-sellers recently, causing a 10 pt drop in its share price over the past 2-3 weeks.

Alfred Little submits:China MediaExpress Holdings (NASDAQ: CCME) investors suffered nearly devastating losses last week as short sellers Citron Research and Muddy Waters LLC published back to b

Paul Sco submits:The movie, "The Hangover," was a Las Vegas-set comedy centered around three groomsmen who lose their about-to-be-wed buddy during their drunken misadventures then must retrace their steps in order to find him. For China MediaExpress Holdings (CCME), my first pick of 2010 that I believe has strong potential to be in my 100%+ gainers club, you must retrace their steps to get the full potential of this story.

Dutch Trader submits: Why doesn't China MediaExpress (CCME) go private?A lot of Chinese management teams are fed up with U.S. capital markets. From short sellers and class action suits to negative media reports, you really can get crazy. In the case of China MediaExpress Holdings, the battle between shorts and longs has already been going on too long.

Michael Anderson submits:The amount of due diligence performed on China MediaExpress (CCME) goes above and beyond in showing what a quality, high-growth company it is. Here is an article that goes more in-depth about the reasons to believe in China MediaExpress.

Dutch Trader submits: A lot has been written about China MediaExpress (CCME). Who is right or who is wrong is still questionable, although my belief is that China MediaExpress didn't commit fraud.That is why I would certainly appreciate a full inquiry by the SEC into this case.