China MediaExpress Holdings, Inc. (fka CCME)

[Headley Lamar]

I don't see that happening either. What would their increased costs be? There is no competition in their space at this time, so it would have to be sales driven or they would have to be increasing their concessions to the bus companies.

As far as sales are concerned, I just don't see how they would suddenly have to spend more money to find companies to advertise when demand for advertising is growing. Even if they are spending more on sales to increase their % of direct advertising, those expenses should be offset by the increased margin from going direct.

As per concessions to the bus companies, that is negotiated at the time that the contract is signed, is it not? I haven't read or heard anything from management indicating that they have recently had to start spending more to acquire new contracts.