Replies to post #661 on China MediaExpress Holdings, Inc. (fka CCME)

[abh3vt]

I've seen two separate make-goods for FY10 for CCME. The 83.5MM net that was part of the original SPAC deal and the one for the Starr deal that was "only" 55MM net. The company has not provided its official guidance as of yet, so we can only speculate which target is more appropriate. If I had to wager, I'd guess that the 55MM net is the organic growth target excluding any acquisitions......

Has anyone read the language of the Starr deal to see if the "penalty" shares (if they are short of the 42MM net income, as adjusted, for FY09) come out of the Founders shares or would be newly issued shares?

[Traderfan]

I think others already pointed it out but there is no "projected net income" for 2010. The company never ever gave any guidance so far for 2010. And this 83 million target is not a make good but rather an earn out. So whether they will reach this is up in the stars but it doesn't matter actually if they don't hit it because that would mean that we will have less outstanding shares in 2011. So it's not all a negative if we can only do 78 million or so.... lol