China MediaExpress Holdings (NYSE AMEX:CCME)

On November 2, 2009 we published "Hidden Clues Yield Opportunities", an article in which we mentioned Amcon Distributing (NYSE AMEX:DIT) and Hong Kong Highpower Technology (NYSE AMEX:HPJ) as companies giving us clues into their future growth prospects.

Some bullish clues we search for are insider buying at 52-week highs (ex. Amcon), substantial increases in dividends, acquisitions made with existing cash balances, lenders amending loan arrangements by accepting equity, news indicating that guidance could surpass estimates (ex. Hong Kong Highpower) and reverse splits during a period of growth. 

This morning, China MediaExpress Holdings (TMI)  repurchased and retired 1.9 million warrants in a private transaction.

We have been following the China MediaExpress / Tm Entertainment & Media story since June 25, 2009.

Today's actions by China Media may be a clue indicating that cash flow is stronger than anticipated since the Company is willing to retire warrants from which it would have otherwise received cash upon exercise.

We still can’t rule out any future capital raise events, but investors may view today's move as management's confidence in its business prospects and a willingness to enhance shareholder value.

We will continue to keep our eyes wide open and ears pressed to the pavement in search of company clues that ultimately lead to certainty in these uncertain times.