I've been researching this company ever since I became aware that Haim Saban had made a major investment in it. Haim was the founder of Fox Family which he owned with News Corp until its sale to The Walt Disney Company in October, 2001. He's one of the smartest and wealthiest investors in the entertainment & media space. He bot a large chunk of Taomee at $10 -- from what I understand, he felt it was a steal at that price. Haim is a strategic thinker and he usually views his investments in this space as puzzle pieces that eventually will play a role in his media investment empire. At $6, and let's say hypothetically a 10x p/e and a pile of cash on the balance sheet, there isn't much downside. The upside? I don't know, but Haim went into this expecting at least a triple, maybe more.
There may be more to the recent activity, but nothing to share on a public bulleting board.