China Growth Stocks

[abh3vt]

As for the argument that they overestimated their capex needs, what did they think those capex needs were going to be?

Rato, you forgot about this stated capex need in the early filings for CCME:

Based on current estimates, CME expects its capital expenditures in the future to primarily consist of:


•  approximately $1,000 on equipment and a control system for each bus added to its network as it expands its geographic coverage and increases the number of inter-city express buses within its network; and

•  approximately $150,000 per bus station and less than $100 per bus to upgrade CME’s technological capability to change programs and advertisements from a manual system to local wireless network technology; CME’s expects that the number of bus stations and number of buses that will be upgraded with the wireless network technology will be approximately 255 and 31,000, respectively, by the end of 2010.

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They changed their minds about the need for this spending....but it was originally projected to be significant.