China MediaExpress Holdings, Inc. (fka CCME)

[Drexion2004]

Conference Call Summary:
1) Chairman thinks the CPM rates will equalize with direct competitors in the coming years as they strengthen their client-base (Its currently as low as 1/6th the CPM compared to VISN in same geographic area).
2) Direct-ad client CPM is roughly 15% higher than ad-agency clients
3) Ad-Inventory utilization is an amazing 97% giving plenty of pricing power.
4) 15% CPM raise in Q1 2010.
5) Guidance only includes current revenue streams/buses/contracts (Includes embedded ads but not soft ads, stationary media at bus-terminals, or new-services with hotels/local-attractions/etc)
6) Bus network still going to 30k by end of 2010.
7) Being prudent to make wise acquisitions since they may very well hit 2010 earn-out without any acquisitions.
8) Margins will remain roughly the same in 2010 (I think they will rise a bit unless they make an acquisition which would lower their margin)
9) Guidance is based on 21k buses we have now, not including any from projected 30k network by end of 2010.
10) No board determination regarding uplisting to Nasdaq yet.
11) Q1 2010 will probably be a little weaker than Q4 2010 due to seasonality. Q3 and Q4 tend to be the strongest.

Hard not to become overly optimistic with a CC like that... Certainly seems like that 71-75M guidance is leaving *plenty* of room on the upside even without any acquisitions.

-Fernando