Since its listing in March 2007, XFML has continuously been raising forecasts based upon strong business outlook. Continued growth in advertising services revenues are main reason for upward revision of the Company’s forecasts.
Positive effects from the continuing ramp up in preparation for Beijing Olympics in 2008 and wide-spread interest and participation in mainland stock markets have had large, positive impact for XFML.
PEG ratio of 0.49 for FY 2007 indicates XFML is undervalued especially when one compares it to china advertising peer Focus Media (FMCN) which has a PEG ratio of 1.4
Also, some other healthy signs for XFML give me confidence that now is a good time to buy. Short interest has been decreasing in XFML and institutional ownership has been steadily increasing.
In March 2007, financial institutions held 19.5% of the 135.82 million common shares outstanding. In June 2007 that figure moved up to 24.2% and a total of 42 institutions now hold a position in XFML.
This stock is extremely volatile. It has traded up and down between $5 and $9.5 in just the last 3 months. With continued strong growth in the China advertising and media sector, i believe XFML is a strong way to profit from this growth and recommend steady accumulation. I have bought already bought part of my position at $8 in anticipation of an earnings pop this upcoming week and am also patiently awaiting any drop close to $7 for more accumulation.
$8.25 (11/10/07)
