Focus Media Holding Ltd. (FMCN): Today's Featured Media Loser

Focus Media ( FMCN) pushed the Media industry lower today making it today's featured Media loser. The industry as a whole closed the day up 0.6%. By the end of trading, Focus Media fell 74 cents (-4%) to $18.01 on heavy volume. Throughout the day, 5.9 million shares of Focus Media exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $16.80-$19.02 after having opened the day at $19 as compared to the previous trading day's close of $18.75. Other company's within the Media industry that declined today were: Tudou Holdings ( TUDO), down 11.3%, Inuvo ( INUV), down 9.4%, Digital Domain Media Group ( DDMG), down 8.3%, and Dial Global ( DIAL), down 7.2%.

Focus Media Holding Limited, a multi-platform digital media company, operates liquid crystal display (LCD) network using audiovisual digital displays in China. Focus Media has a market cap of $2.52 billion and is part of the services sector. The company has a P/E ratio of 7.9, below the average media industry P/E ratio of 8.1 and below the S&P 500 P/E ratio of 17.7. Shares are unchanged year to date as of the close of trading on Monday. Currently there are seven analysts that rate Focus Media a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Focus Media as a buy. 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, impressive record of earnings per share growth, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Seven Arts Entertainment ( SAPX), up 38.2%, Dex One ( DEXO), up 15.4%, ReachLocal ( RLOC), up 11.2%, and Lamar Advertising ( LAMR), up 9.7%, were all gainers within the media industry with DIRECTV ( DTV) being today's featured media industry winner.

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).
null