TMI is nearly -1.50 off its day highs, looks like novice investors are looking
at todays press release showing its financials which do not include any of the newly acquired China Media financial numbers. TMI is now China Media in a reverse Merger. Anyone who is selling or shorting on this yahoo fianancials data is got to be fresh off the college campus rookie.
lets do some quick math on how TMI can get to $20/shr
TMI had 10.255M shares outstanding
TMI issued 19.5M shares & $20M cash for China Media Express
10.255M + 19.5M = 29.755M shares
Basically this is a reverse merger where the buyer is left with less shares.
China Media earned net income of $15.7M in 1st half of 2009
So assuming they can repeat those numbers in 2nd half I come up with $31.4M net income.
Divide $31.4M by 30.255M outstanding = $1.038 EPS is very possible for TMI
TM's initial public offering was consummated on October 17, 2007, generating
proceeds of $82,040,000 through the sale of 10,255,000 units at $8.00 per unit
(including 1,225,000 units pursuant to the exercise of the underwriters'
over-allotment option). Each unit is comprised of one share of TM's common stock
and one warrant with an exercise price of $5.50. Each warrant will become
exercisable on the latter of the completion of a business combination or October
17, 2008 and will expire on October 17, 2011, or earlier upon redemption. As of
June 30, 2009, TM held $81,134,675 (or approximately $7.91 per share) in a trust
account maintained by an independent trustee, which will be released upon the
consummation of the business combination.
As announced, on May 1, 2009, the Company entered into a definitive share
exchange agreement whereby TM will issue at closing 19.5 million common shares
and $20.0 million in cash in exchange for 100% of the outstanding equity of the
privately-held Hong Kong Mandefu Holding Limited (d/b/a China MediaExpress),
subject to TM shareholder approval. Upon the closing of the transaction, which
is anticipated at the beginning of the fourth quarter of 2009, TM will change
its name to China MediaExpress Holdings, Inc.