Focus Media (FMCN)

Focus Media (FMCN)

Postby winston » Tue Nov 22, 2011 6:34 am

Focus Media Slammed by Fraud Charges From Muddy Waters
By Robert Holmes

BOSTON (TheStreet) -- Focus Media(FMCN_) shares plunged by more than half, after short seller Muddy Waters Research alleged the Chinese interactive digital media company has hidden losses, by overpaying for acquisitions.

http://www.thestreet.com/story/11319369 ... L_wal_html
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Re: Focus Media (FMCN)

Postby Atlas » Wed Nov 23, 2011 11:47 pm

Once the buyback is over this one will touch 10 $ again. The 50 cent army over at the yahoo message board is working overtime. This is a big deal with all the drama. I'm shorting this one now.
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Re: Focus Media (FMCN)

Postby iam802 » Wed Nov 23, 2011 11:57 pm

Nice one.

Given the weak economy, revenue will be a challenge for this industry as well.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Focus Media (FMCN)

Postby Atlas » Sun Jan 08, 2012 9:37 pm

Ha! This is just getting funnier by the day:

Muddy Waters questions Focus Media's acquisition of ginseng plantation

Theflyonthewall.com – Fri, Jan 6, 2012 11:26 AM EST

Muddy Waters, in a new report, calls Focus Media's acquisition of a ginseng plantation at the Russian and North Korean border bizarre and says selling shareholders, who had purchased the plantation five months earlier from the founders, included at least one Focus Media employee.

Muddys Waters encourages Deloitte Touche Tohmatsu, Focus Media's auditor, to look at the acquisition for improprieties.

Note Muddy Waters has previously issued cautious reports on Focus Media.
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Re: Focus Media (FMCN)

Postby winston » Tue Mar 20, 2012 9:22 am

not vested

DJ Focus Media 4Q Profit Up 60% On LCD Display, Poster Frame Rev

Focus Media Holding Ltd.'s (FMCN) fourth-quarter profit rose 60% as the Chinese digital-advertising company saw stronger LCD display and poster frame network revenue.

Shares rose 4.5% after hours $29.30 after the company beat earnings and revenue expectations. The stock was up 43% so far this year as of Monday's close.

The company has reported quarterly profits for more than a year now, helped by growing revenue and an improving advertising market in China. It has also benefited from restructuring that sloughed off parts of its Internet and billboard businesses in the midst of a six-quarter streak of losses.

The company had in recent months repeatedly denied accusations by short seller Muddy Waters LLC that it fraudulently overstated the number of screens in its LCD network and overpaid for acquisitions to hide losses, calling the allegations incorrect and misleading.

In the wake of the allegations, Focus Media has unveiled a number of measures to prove its confidence in the company's prospects, including a disclosure in November that its top executive would purchase shares in a block trade and unveiling a quarterly dividend in January.

Focus Media posted a profit of $75.4 million, or 55 cents per American depositary share, up from $47.2 million, or 33 cents per ADS, a year earlier. Excluding share-based compensation, write-downs and other special items, earnings rose to 70 cents a share from 41 cents.

Net revenue improved 61% to $256.4 million.

Analysts surveyed by Thomson Reuters had expected earnings of 61 cents a share on revenue of $225 million.

Gross margin widened to 68.4% from 59.2%.

Sales in the LCD display network segment--the company's largest top-line contributor--jumped 48% to $150.5 million. The poster frame network's revenue rose 62% to $70.6 million.

Source: Dow Jones Newswires
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