By
Brian D. Pacampara
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More Articles
August 6, 2008
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Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, advertising network operator Focus Media Holding (Nasdaq: FMCN ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Focus Media's business and see what CAPS investors are saying about the stock right now.
Focus Media facts
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Headquarters (founded)
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Shanghai, China (1997)
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Market cap
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$3.60 billion
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Industry
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Advertising agencies
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Trailing-12-month revenue
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$616.79 billion
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Management
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CEO Jason Jiang (since 2003);
CFO Daniel Wu (since 2005)
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Return on equity (avg. past three years)
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10.3%
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CAPS members bullish on FMCN also bullish on:
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Apple (Nasdaq: AAPL ) ,
Vale (NYSE: RIO ) ,
Google (Nasdaq: GOOG )
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CAPS members bearish on FMCN also bearish on:
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Citigroup (NYSE: C ) ,
Beazer Homes USA (NYSE: BZH ) ,
Freddie Mac (NYSE: FRE )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Over on CAPS, 251 of the 259 All-Star members who have rated Focus Media -- some 97% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include choppaz4life and nrvbrokerage, both of whom are ranked in the top 10% of our community.
Last month, choppaz4life broke down the bullish logic for our community:
Nice growth rate. Room to grow. As China's middle class grows, so does spending. As spending grows advertising dollars will grow also.
An earlier pitch from nrvbrokerage in January followed that line of thinking and concentrated on Focus Media's fabulous long-term tailwinds:
Great [long-term] China play. Growth might be slowing in China in the near term, but this country still has a lot more growth potential. Focus Media is a toll bridge in China. Companies must reach their target customers with advertisements and Focus Media is the best way to do that. They have the greatest market share and analysts are projecting 40% growth for the next five years.
What do you think about Focus Media, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so go ahead and get started.
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