Focus Media Hit by Mobile Spamming Concerns - Richard W. Ji (Morgan Stanley)

Sign Up | Log In | What is SocialPicks?

Focus Media Hit by Mobile Spamming Concerns
Mar 18, 2008 12:26 PM UTC

Richard W. Ji (Morgan Stanley)

Return	Risk
-63.76%	MID

Tracked Blogger

Profile & Performance

Subscribe to author

Symbol	Sentiment	Start	Return	Closed
FMCN		03/18/08	-63.76%	--

3/18 - "The market overreacted, in our view...Our DCF-based fair value for FMCN’s mobile business is around US$4-5 per ADS, implying 20-25x our forecast ’08 earnings for mobile operation...Under the worst case scenario, even if we completely remove the mobile operation, our DCF-based fair value would imply only a 5-10% drop, vs. a 27% share price decline yesterday."

"At the current price, FMCN is trading at mid-10x our
forecast ’08 earnings (vs. 20-30x for other Chinese
advertising leaders and the lowest level since IPO), with
a PEG ratio of 0.3 based on our forecast operating profit
CAGR of mid-50% (’08-’10E)."

Add Comment

Be the first to comment on this story and earn 2 points.

Your Comment

IN THE PRESS

None of the information contained on SocialPicks.com constitutes a recommendation by SocialPicks or its users that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. SocialPicks is not responsible for the posts, discussions, and recommendations of the users on the Site. SocialPicks does not provide investment advice. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the website. SocialPicks' users' past results are not necessarily indicative of future performance. Neither SocialPicks nor any of its users guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the website. You understand and agree that you use the Site and Services at your own discretion and risk and that you will be solely responsible for any damages that arise from such use. Before acting on any information contained on the website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.