China MediaExpress Holdings, Inc. (fka CCME)

[Traderfan]

Dandued

Good post. In my personal math for 2011 I think that the margins might be a bit lower than 70% mainly because of higher concession fees but all in all I think 3.50 is achieveable without any further use of their cash. The thing is that they clearly need to do more than 3 bucks per share otherwise we won't have EPS growth yoy because this year we might just also do 2.90-3 bucks in non GAAP EPS.

The real scary stuff is if one factors in a solid accreditive aquisition. Just imagine if they buy something for 150 million. Let's assume they buy it for 6 times earnings for 2011. That would give you 25 million in additional earnings which would be another 54 cents approximately. And they certainly have the cash to buy. They just need to buy something which is good and cheap.