China MediaExpress Holdings, Inc. (fka CCME)

[CanZen]

Wish I read this before my purchase. Balanced perspective from a short for a change: http://variantviewresearch.com/

ne of the promoters, Ou Wen Lin, filed form 144 with the SEC that he was planning to sell 1,060,000 shares. After the stock tanked, the company issued a press release basically claiming that this was a typo or similar mistake, and that the correct number was 60,000 shares. One month later, Lin sold 1,000,000 shares through his vehicle Thousand Space Holdings. The company had no legitimate incentive and clear disincentives to issue this press release. Lin sold at a very low valuation and the company tried to cover it up.

It does not make sense that the company would sell shares to Starr at such a low valuation. Taking into account the deep ITM warrants, they sold equity to Starr at a very low single-digit P/E at a time when the company had NO legitimate need for capital.

On Dec 9, 2010, the CFO purchased 100,000 shares at $15 according to a filing. However, the insider vehicle Bright Elite Management also sold 100,000 shares at $15 on the same date according to a different filing. This was not a normal insider purchase, but a deceptive investor relations stunt.