China MediaExpress Holdings, Inc. (fka CCME)

[Shengli]

I don't believe what is holding CCME back is short interest.The regular short interest for the stock is less than 3% and less than 1 day to cover. I don't believe that includes naked shorts but they came off the Reg short list and frankly they would not use your shares for this .

http://shortsqueeze.com/?symbol=ccme&submit=Short+Quote%99

My opinion is that

1) People bought warrants and cheap shares that have doubled in value.Some investors who got in early have sold vigorously last week.That volume selling has stopped for now.The stock has been in a logical process of back filling and this is a healthy process

2) Another reason is that China companies have been out of favor due to uncertainly , Yuan , US Govt complaining , bubble talk etc.

3) Eventually a good amount of locked up shares will be liquid , earnings will slow to a degree plus the company just came out with their first 10Q , some investors are waiting.

4) They raised 100 million and have sat on it for 4 months.Where is an acquisition ? More bus contracts ? When you borrow that amount you usually have a more explicit plan.
A side question is that money in Yuan or Dollars ? If it is Yuan the value has increased that could be a positive.

5) Sell side coverage and noise is non existent.Amex vs Naz doesnt help.

Now you can find holes in all the above arguments and that would be fair but none of the reasons above are reasons to sell.In-fact they are reasons to buy because of the PEG imbalance.

All short term items above