Replies to post #338 on China MediaExpress Holdings, Inc. (fka CCME)

[gunnar]

That's an interesting observation, I do remember reading the CEO comments re a website.

Owning an advertising platform is a great advantage if you branch out. Ted Turner did this when he owned a large, highly profitable billboard company and then bought a small, unprofitable TV station. He just filled all of his excess capacity billboard space with ads for his own TV station, and Turner Broadcasting was born. The business model wouldn't have worked without the leverage of free - and effective - advertising.

[RyanW439]

I don't think CTRP is actually trading at a P/E of 50. You're looking at google finance, which has EPS incorrect I believe.. EPS is more like $2.75 in USD (if my calculations are correct)..not the $.68 that is quoted on the google finance board. The google finance board often gets the EPS wrong when earnings are quoted in a foreign currency. They have EPS of 18.69 CNY, at 6.82CNY/USD, that puts EPS at $2.74 fully diluted..