Replies to post #25935 on China MediaExpress Holdings, Inc. (fka CCME)

[supersnivs]

Koufax:

I will consolidate the points made so far by value1008 and others and send to you via a file in our Yahoo group.

I have been involved in similar efforts before and there is a tendency for everyone to promote individual interests. In light of the fact that this will be a letter from shareholders (as opposed to option holders), I would think an underlying fundamental of the text would be to keep trading halted until all of the problems are resolved. However, we may get news in the 8-K indicative of massive fraud, in which case maybe we would want trading opened just to cut our losses. This is one of the reasons I thought we needed to wait and see what the 8-K said first. But the proposed first draft does not need to be perfect, it just needs to get the ideas on paper to get the process going... so I'll do that and circulate it to you.

[marchjuly]

My suggestion regarding ideas needed to be passed to CEO/Star/Board at this critical stage:

Do whatever they can to
1. Try to stay on NASDAQ and not be delisted soon.
2. Try to stay halted until new CFO/auditor/10k things sorted out.

And
3. Tender offer is the best option to save the company which can be a totally turn around and daunt the shorts.

[value1008]

Tom, here are elements from what i've assembled reading so much of everyone's input to this board. Feel free to re-order (re-number), edit, add/subtract; i've also added a possible opening. Comments from all are welcome...
-------------------

[Sample letter from shareholders to CCME management:]


Dear Chairman Zheng Cheng and Board of Directors:

At this very crucial time in CCME's young history, in the aftermath of evidently the most brutal "bear-raid" attack by shortsellers witnessed in recent decades against a healthy smallcap company, we, your loyal shareholders, reach out to you with an urgent request. As holders of CCME common shares, we bear the brunt of the financial pain and even ruin that has been created by the shortsellers/attackers of CCME.

We are grateful that in your open letter to shareholders from Feb. 7, you have expressed your appreciation and concern for us-- please know that you still do have a dedicated following of long shareholders who are a very strong asset right now to support CCME's share-price by not selling our shares, given the fact that shortsellers still need to cover their short positions (effectively creating big "buying pressure") on at least 8 million shares over the days/weeks/months whenever trading is finally resumed.

Honorable Chairman and Board Directors, we know you are already well aware of many of the following points, yet we will state the obvious recommendations:

1) Please try to have the Nasdaq keep the trading halt in place for as long as it takes to properly finish an audit with a new auditor and new CFO. Such a halt will protect longs from excessively fearful, immediate over-selling, and will also enact some financial pain on shorts who bought puts and have to pay high interest fees for their short position.

2) At the appropriate times, prepare the best possible series of press releases to announce company's good standing on their financial reporting and also their exceptionally fine, healthy balance sheet.

3) Please enact a much larger share-buyback and larger dividend than earlier stated in CCME press releases.

4) Alternatively, CCME could make a tender offer of $12 to $14 per share expiring a certain amount of months out and then after expiration, issue a dividend from some of the remaining funds from those who did not accept the tender offer. It would also be important to announce the expectation of a dividend at the same time of an announcement of the tender offer.

5) We strongly recommend that CCME, in solidarity with common shareholders, announce the canceling of CEO's earnout shares for 2011 and perhaps 2012 as well--not because earnings targets won't be achieved, but rather to powerfully uplift CCME's already impressive EPS and to rebut any ridiculous charges by critics that CCME management is only trying to perpetuate selfish fraud. A bigger EPS and higher shareprice will eventually enrich all holders of both preferred and common shares.

6) An alternative to #4 would be to grant the earnout shares instead to a major financial institution who could serve as a powerful backer/sponsor for CCME in the investment community here in the USA or (with a dual listing) in Hong Kong.

7) We also strongly recommend that, at some point after a new CFO is hired and has time to review all figures and work with an auditor to complete a 10-K, that then CCME should issue a statement as soon as possible about guidance for 2011 and not give guidance that is too conservative, but more realistically reflecting the expected growth of revenues, net income, and EPS.

8) At the appropriate time, please conduct one or more conference calls, conducted with the highest level of English-language communication skills, presentation materials, etc. (This is where your evidently recently-contracted PR firm can play an immensely important role.) CCME should model the same level of professionalism as shown, for instance, in FMCN's recent conference call.

Again, dear Chairman and Board Directors, we hasten to say that we are only stating obvious recommendations that you and your closest advisors already know.

We support you in taking these steps by remaining "long" with our shares in CCME. We are relying on your leadership during this very painful time. Many lives will be terribly injured, even ruined and traumatized if the shortsellers are allowed to be victorious over CCME.

With our gratitude and best regards,

Your shareholders