I'm not the type to make grim market calls on body parts, but now would be a good time to go long on Chinese eyeballs.
Focus Media operates several real world marketing platforms. Its network includes 164,575 LCD screens, 300,012 poster frames, and 35,810 digital posters cranking out ads in highly trafficked areas. It also watches over traditional billboards and a movie theater advertising network.
It's not just Focus Media getting advertisers to pay more to reach audiences. AirMedia
AirMedia's fourth-quarter revenue soared 57% to $70.8 million. Along with its adjusted profit of $0.10 a share, AirMedia topped Wall Street's target of $0.08 a share on $67.8 million in revenue.
AirMedia's stock still fell 7% yesterday, but that was the result of problematic guidance. It sees revenue clocking in between $58 million to $60 million for the current quarter. There is a seasonal dip to bake in, but the pros were forecasting revenue of $64 million. Margins will also be pressured, as the $38.1 million that AirMedia is expected to shell out in concession fees to its airport landlords is more than the $35.8 million it shelled out during the fourth quarter despite the sequential top-line drop.
Focus Media's outlook, on the other hand, didn't disappoint. It's looking to earn $0.25 a share to $0.27 a share on $132 million to $135 million in revenue. Wall Street's projecting a profit of $0.22 a share on $114.2 million in revenue.
There are other plays to consider for those wanting to go long Chinese eyeballs. VisionMedia
There are also plenty of online advertising specialists for those seeking some dot-com sizzle. SINA
All seven of these companies are cashing in on China's booming economy and its financially empowered middle class. It's hard to bet against these trends and recent financials. Short Chinese eyeballs at your own risk.
Want to learn about a stock that's destined to shoot higher as China's first global brand emerges? Check it out in this special free report.
Baidu and Sohu.com are Motley Fool Rule Breakers recommendations. Sina is a Motley Fool Stock Advisor pick. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Longtime Fool contributor Rick Munarriz has been to mainland China just once, but he's longing to brush up on Mandarin and make it another go in the future. He does not own shares in any of the companies mentioned in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.