China Media Express Holdings:CCME)-NASDAQ
• Recent price: $12.93
• 52 week range: $7.35 to $14.82
• ’09 performance: $95.9 million revs- $56.6 million net profits
• Market Cap: $400 million
• Q1 Financials: $44.5 million in revs (137% growth from Q1 ’09), Net: $18.1 million after subtracting one stupid GAAP non cash charge
• 2010 Estimated EPS: $1.75 to $2- company expects to earn about $70 million with an estimated 36 million shares I&O
• Overview: In 2008 Vision Media (VISN) was one of the hottest stocks around. It was $6 in March of ’08, and ran to $26 by the end of July. The company was deploying flat panel displays all over China at high traffic points and making the screens available to advertisers. The business model was flawed as the advertisers came to understand people really didn't see the ads as they moved around rather busily on their way to wherever they were going. CCME has taken a different approach, and advertisers love it.
There are 21,500 mass transit buses in China’s 5 most prosperous municipalities sporting CCME’s advertorial flat panel displays. The audience is captive on the bus, and the advertising is far more effective. If the company can deliver $2 in EPS this year, I cant see the stock trading much under $25 to $30 as interest comes back to China stocks. Amazingly, there is not one analyst covering the stock yet, which is another reason to own it now.
AI
