3. Bona Film Group ( BONA) is China's leading privately owned film distributor, with interests in film distribution, film production, film exhibition and talent representation. During 2010, net revenue increased to $52.8 million, compared with $38.4 million in 2009, with around $11.3 million contributed from company's movie theatre business during April 2010. The acquisition improved gross margin to 49.8% from 48.2% in 2009, as gross profit boosted $6 million in 2010. Net loss for full-year 2010 was $4.2 million, compared to net income of $5.5 million for 2009, due to a change in fair value of embedded derivatives associated with the company's preferred shares. Excluding changes in fair value of derivatives and warrants and share-based compensation, the company's 2010 net income was $10.8 million, increasing 100% increase year-over-year. The stock is trading at 16 times its estimated 2010 earnings with an estimated upside of 76% in the next year.
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100.