The

media

industry closed the day down 3.1%.

RealD Inc

(

RLD

),

Seven Arts Entertainment Inc

(

SAPX

),

Dex One

(

DEXO

), and

Entravision Communications Corporation

(

EVC

) were all decliners today within the media industry with

Focus Media

(

FMCN

) being today's featured media loser. Focus Media fell $2.48 (-9.1%) to $24.93 on heavy volume. Throughout the day, 4.9 million shares of Focus Media exchanged hands as compared to its average daily volume of 2.4 million shares.

Focus Media Holding Limited, a multi- platform digital media company, operates out-of-home advertising network using audiovisual digital displays in China. It operates out-of-home advertising network based on the number of locations and flat-panel television displays in its network. Focus Media has a market cap of $3.6 billion and is part of the

services

sector. The company has a P/E ratio of 26.4, above the average media industry P/E ratio of 12.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 25% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Focus Media as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the positive front,

ChinaNet Online Holdings Inc

(

CNET

),

Liberty Capital

(

LCPBD

),

Bona Film Group

(

BONA

), and

China Mass Media

(

CMM

) were all gainers within the media industry with

Net Communications Services Inc

(

NETC

) being today's media industry Leader Spotlight stock.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the media industry could consider

PowerShares Dynamic Media

(

PBS

) while those bearish on the media industry could consider

ProShares Ultra Sht Consumer Services

(

SCC

).

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