This past September, research that John Hempton of Bronte Capital did on FMCN inspired us to do some more work ourselves. This is the first time we have publicly discussed these findings, which provide additional evidence that FMCN is a long-standing fraud. To download the 3-page report, check th… more
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… more
FMCN’s bizarre acquisition of a ginseng plantation at the Russian and North Korean border illustrates that FMCN’s acquisitions are not kosher. The most troubling aspect of this acquisition is that the selling shareholders, who had purchased the plantation only five months earlier from the founders,… more
Muddy Waters, LLC asks and answers the question: Is "independent" verification in China better than toilet paper? FMCN announced that it's independently verifying the size of its LCD commercial display network. MW has direct experience with another company that engaged a top research firm to confirm… more
NOTE: An earlier draft / discussion version of this report may have been inadvertently disseminated – this report is the only official version, and any content in an earlier version was for internal discussion purposes and should be disregarded in its entirety. FMCN’s partial response to our 80-p… more
Muddy Waters rates Focus Media Holding Ltd. (NASDAQ: FMCN) shares a Strong Sell because of significant overstatement of the number of screens in its LCD network and its Olympus-style acquisition overpayments. The $1.1 billion in write-downs from its acquisitions exceed one-third of FMCN’s enterprise… more