XMFL challenges

Seeking Alpha gets down and dirty with gossip about Xinhua Finance Media and the 18% decline in its stock price last week. We have no idea how much of this stuff is true, but it seems that all is not entirely well in the house that Fredy built.

In case you don't make it down to the final para and to be fair to the Xinhua Finance folk, read this:

The news coming over the weekend look bad at first glance but I'm not so sure the impact is as bad as suggested by the decline in XFML's stock price. Also, it looks like a rather large short line was put out over the last week. Trading around 16x 08 EPS, the stock's not exactly expensive.

I would put XFML on my bounce play radar today.

I think I should get a "bounce play radar". It sounds very cool....or at least cool if you hang around on the periphery of the financial services industry.

Update: I see that Ms. Bush has made a statement on all this:

SHANGHAI, May 21, 2007 –In response to the media coverage over the weekend, Xinhua Finance Chief Executive Fredy Bush issued the following statement:

Xinhua Finance Media listed on NASDAQ after complying fully with all disclosure and due diligence processes required in the United States. Furthermore, the Company engaged the most qualified independent advisers available to oversee this process. We have an internal committee co-chaired by John McLean, General Counsel of Xinhua Finance and Kevin Cameron, President and co-founder of Glass Lewis, who continually review the Group's corporate governance to make recommendations to the independent Corporate Governance Board Committee of Xinhua Finance Media and the Board of Xinhua Finance Limited. I look forward to keeping investors and followers informed of our progress and these ongoing initiatives.

Make of that what you will!