Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
Focus Media (
FMCN) pushed the Media industry lower today making it today's featured Media laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Focus Media fell 46 cents (-1.9%) to $24 on average volume. Throughout the day, two million shares of Focus Media exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $23.80-$24.42 after having opened the day at $24.25 as compared to the previous trading day's close of $24.46. Other companies within the Media industry that declined today were:
Digital Cinema Destinations (
DCIN), down 13.2%,
Charm Communications (
CHRM), down 10.4%,
Envoy Capital Group (
ECGI), down 5.2%, and
Dolan (
DM), down 4.5%.
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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 $3.12 billion and is part of the
services sector. The company has a P/E ratio of 9.2, above the average media industry P/E ratio of 1.8 and below the S&P 500 P/E ratio of 17.7. Shares are up 25.5% year to date as of the close of trading on Thursday. Currently there are five 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, notable return on equity, impressive record of earnings per share growth and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
On the positive front,
Inuvo (
INUV), up 33.3%,
ChinaNet Online Holdings (
CNET), up 10.7%,
Radio One (
ROIA), up 9.7%, and
Insignia Systems (
ISIG), up 7%, were all gainers within the media industry with
Comcast (
CMCSA) being today's featured media industry leader.
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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