Wednesday, December 12, 2007

FMCN - 173 shares at $57.70

"Anywhere, Anytime, Any Screen" is the goal of the out-of-home Chinese advertising company Focus Media. The company operates a large network of advertising screens in China which includes digital billboards and digital frames. In 2006 the company derived 99.1% of its revenue from its advertising service. In an effort to expand its exposure Focus Media has been on an agressive run of acquisitions which includes competitors Target-Media and CGEN as well as the acquisition of China's largest WAP-based mobile advertising company Dotad. With these recent acquisitions Focus Media seems poised to greatly expand its earnings and with the 2008 Olympics coming to China, advertising slots are sure to increase in price. Currently, the FMCN trades at a P/E: 52.32 and Market Cap of 7.35B, we will track the approximately 10,000 dollar investment.

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