China MediaExpress Holdings, Inc. (fka CCME)

[Headley Lamar]

What defines a great company is how they handle adversity. The next two weeks are absolutely critical. CCME and all of us investors got our asses handed to us because CCME broke one of the two golden rules of publicly traded companies:

1) Make lots of money and give it back to your shareholders and
2) Never let your company or stock get raided

We all said it over the course of the year, they should have taken more aggressive steps to get the shorts off of the stock. When the number was approaching 6 million shares short the defensive wheels should have been in motion. They were clearly unprepared for this. A one time $1 special dividend and actually initiating the buyback at $8 probably would have done the trick.

The important think now is that Jacky take full measure of the gravity of this situation and do EVERYTHING that he can to restore the faith. And I mean EVERYTHING. Every sandbag that he has been holding, everything that is just a pain in the ass but has to be done. If I were in his shoes and the fate of the stock rested on my actions I would:

1) Solicit the board for a one time $1 dividend payable immediately. Exempt the insiders from this divy.
2) Leak the 10k numbers
3) Announce the dividend and bring it in higher than expected
4) Bump the buyback to 35 million and announce it is underway and will be fully exercised by the end of Q1.
5) Hire a secondary auditor to review the 10k in conjunction with Deloitte
6) Call everyone of my biggest customers and ask them to go on the record for a 5% discount on ad rates. My company does this, it's called a friggen reference.
7) Announce a new system to track current bus contracts and open it up to investors. If they can announce it in a PR they can post the contracts.

These are serious allegations and they need a serious response.