Replies to post #5388 on China MediaExpress Holdings, Inc. (fka CCME)

[pos_stock_hoarder]

Happy Birthday. Oh, I remember those days of being 1 day old!

[Bob Stocks]

Your first post eh?

[RyanW439]

Sorry bud, go ahead and cover before you go bankrupt. You're not on the right side of this trade...

[tiesto]

Better try at Yahoo, this board is a little too slick to fall for the BS. You are trying to cast doubt and most here are in constant communication with the company and some are even on a first name basis with Jacky. Many have done site visits and all of us have done extensive DD and been here for a very long time. It's legit and we are in the early stages of gaining exposure. One day it will be fairly priced, but that price is well north of $14.

[atco1982]

You seem to know nothing about China business. Late payments are standard. The bigger the company paying and the smaller the company receiving, the greater the AR. TSTC has an AR of 94%.

[GorillaGorilla]

DSO - yup I got 35 as well for Q2 and 38 for Q1. They are saying their terms are 30 to 60 days. These things are largely industry driven and I don't know how they compare with other companies.

In China it seems state owned enterprises and other monopolies are very poor with their payments. However, clearly, CCME is working with advertising agencies and directly with large firms wanting to create a brand.

They are far from unheard of. A number of Chinese firms I follow have been improving cash cycles - they have little choice given prohibitive costs use of equity vs their expansion rates.

Four Chinese companies with better DSO's I have - not checked them all by a long chalk.

CELM last quarter 35 days - they've always been impressive
LPH has improved from 42 days a year ago to 20 days last quarter.
CCGY has 23 days in the last quarter and 22 in previous quarter.
CPQQ had 38 in Q1 and 26 in Q2.

Even if you look at companies like YONG Q2 last year was 72 and Q2 this year was 55.

I'm expecting the good companies will keep working at this as cash is the main restriction to growth.

I also just did a quick review of the company's most recent quarterly financials (vs. prior quarters) and the numbers are too good to be true..... Can someone name one company, let alone many, that have a 70%+ EBITDA margin, growing revenue at 150%+... with flat capex and working capital.... ??

I know! God knows I've looked long enough to find a company that good. Anyway, as you know, the company started advertising on a relatively few, in the 100's, airport buses vs the 10s thousands of intercity buses - the difference is that the passengers on airport buses are worth much more to advertisers - so these few buses have a massive positive influence to the top and bottom lines.

Across all the buses embedded advertising is now a major revenue stream. Nothing changes except the content being advertised and they make big Yuan. Embedded ads are bringing in as much revenue as the regular adds now. These only began at the end of 2009.

Both of these factors would give you the characteristics that you picked up on and that the stock market will reward handsomely.

rich

[Traderfan]

Not that we haven't seen these postings over and over again from the so called "longs", your posting makes zero sense to me. Is that all you have? You really need to work on your writing style if you wanna pretend you are a long. lol

I also just did a quick review of the company's most recent quarterly financials (vs. prior quarters) and the numbers are too good to be true..... Can someone name one company, let alone many, that have a 70%+ EBITDA margin, growing revenue at 150%+... with flat capex and working capital

Well this makes no sense at all. You say you are long but then you looked a the company financials and they are too good to be true. Well why would you go long first and then start to look at the financials? And if you started to look prior to going long why would you go long after you view the financials if you think they are too good to be true? Buddy, this seriously makes no sense either way. I guess you got ripped the last few days as a short.