China MediaExpress Holdings Inc. (NASDAQ: CCME) shares are down in today�s trading as the stock continues to face pressure from short sellers. The stock reached a low of $12.06 in mid-day trading, and at last check, it was down 7.44% to $12.86. In the last one week, the stock fell 38.35%.
China MediaExpress shares are facing pressure after a couple of research firms questioned some of the company�s claims. A research report from Citron Research, which was released last Monday, disputed some of the claims made by the company, pushing shares immediately lower.
Following Citron�s report, another research firm, Muddy Waters Research, also said that the company may have inflated its revenue and profit numbers. The negative reports resulted in the huge short selling pressure, seen over the last few days.
Last week, China MediaExpress released a statement, defending itself against Citron�s negative report. The company confirmed that it was never approached by Citron with respect to its growth, the advertising business in China or industry conditions generally.
China MediaExpress said that based on a review of the negative statements, it strongly disagrees with the views expressed and believes that investors should rely on the public reports filed with the U.S. Securities and Exchange Commission.
Despite the statements from China MediaExpress, the company�s shares continue to see selling pressure. However, the company said that it still expects to announce its unaudited results for the year ended December 31, 2010, on schedule.
China MediaExpress is the operator of the largest television advertising network on inter-city and airport express buses in China.
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