Largest Shareholder Explains Why Focus Media (NASDAQ:FMCN) Has Bottomed Out
"Strong Buy" Rated U.S.-Listed Chinese Stocks (February 17, 2012)
By Michael Liu
The CEO of the largest shareholder of Focus Media (NASDAQ:FMCN) believes Focus Media's financial results have bottomed and its stock price has already fully reflected all the bad news, reports 21st Century Business Herald.
In an interview with 21st Century Business Herald, Xinjun Liang, CEO of Fosun International Ltd, FMCN's largest shareholder, expresses his confidence in Focus Media. He believes Focus Media is similar to a retail store chain, where the products (ads) are distributed via a centralized system and stores do not have to source products themselves. He believes all bad news is already out for Focus Media, as the company experienced industry crisis, regulatory crisis, and investor confidence crisis in 2008. He believes all the bad news does not impact the long-term value of the Focus Media "stores."
Focus Media (NASDAQ:FMCN) shares are down 12% year-to-date. On average, wall street analysts are expecting its revenue and EPS to rise 12% and 25% in 2010 over 2009. Out of the 12 wall street analysts covering Focus Media, two have a positive rating on the stock, while nine have a neutral rating. FMCN is currently the 108th best-performing Chinese stock listed in the U.S. Click here to see the complete ranking.
For the original article by 21st Century Business Herald, click here.
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