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What: China MediaExpress
So what: Revenue was up 118% to $57.0 million and net income increased by 167% to $31.1 million, as China's appetite for advertising grows. Great headline numbers but earnings per share increased only 44.6% as the diluted share count nearly doubled.
Now what: Traction in its inter-city bus network accounted for most of the company's growth as the network expanded during the quarter. I like what China MediaExpress is doing, and with a price/earnings ratio below 10 and $170 million of cash on hand, the company is in solid value range. I am concerned, however, about the increasing share count -- I will sit out this stock run and wait for a better entry point when the stock cools off.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his Motley Fool CAPS picks at TMFFlushDraw.
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