China MediaExpress Holdings, Inc. (fka CCME)

[Headley Lamar]

Of course a healthy amount of consolidation was absolutely necessary, and in fact is desirable after such a run up. But shedding 25% from intra-day highs in 5 days is well beyond healthy consolidation IMO. Especially after gang buster earnings and a huge guidance raise. It's not like CCME suddenly jumped to valuation inline with its peers. We're back to 7x earnings already for crying out loud.

Today's action was particularly concerning. It was a massive, high volume selloff on a market green day- not normal profit taking. People are starting to run away from the technicals. I think the reason rests 100% upon the lack of cash management. No shares bought back plus a double down on stupidity with no dividend. And people are fed up with the same "Acquisition plans remain a top priority for management" line we have been getting for 9 months now.

Are they going to wait until they have their market cap in cash to do something with it? Why wait until 2011 for a dividend and what happens in January if they don't issue one? It is just nuts IMO.