China MediaExpress Holdings, Inc. (fka CCME)

[Headley Lamar]

I think this line sums it up best -

We are pleased that Starr International increased its investment in CME, which is indicative of their continued confidence in our business plan and growth prospects.

Anyone that thought Starr might be exiting their position or might have had its confidence in CCME rattled at all has been reasurred by this. They just upped their ante by another $13.5 million. These are guys that have direct access to the DAILY financials of CCME. What a powerful statement this purchase is. Also, you can be sure that they didn't buy it at $9 to sell it at $12. They are expecting a big return on this investment.

And CME did it the right way. Private placement. This avoids the controversy of an open S-3 filing and also avoids the price effect of dropping 1.5 million shares into the pool.

They effectively increased the float by 1.5 million shares, but did it by putting the shares in strong hands. This will help ease the concerns of those that were worried about the share buyback shrinking the float too much.

Great situation all around IMO.