I have been a fan of Focus Media Holding (NASDAQ:FMCN) for some time. About a year back I posted that this was a great way to get some China exposure and play the Olympics at the same time. Problem was, I think I was about a year late. The market had already been pricing that in for some time, and the stock has been performing pretty poorly ever since.

An earthquake in China shook the stock and then the weak market dragged it down even farther. The short interest in FMCN has gone up dramatically during this time as trend followers hopped on board and the market took a turn for the worse. Their are currently 23.5 million shares short and an average volume of 4 million. At this rate it would take shorts a full 6 days to cover and it only takes a few positive press releases to make that happen.

Thursday Focus Media announced a $100 million buy back. They are going to use 1/4 of their $400 million in cash to fund it. Tan Zhi, chief executive officer of Focus Media, commented, ''Our Board's approval of the share repurchase program reflects our commitment to increase shareholder value and our confidence that the current ADS price level does not reflect our potential value.''

On that note it seems that FMCN may have found it's bottom. The potential for a short squeeze, the $100 million buyback & the olympics may be the trifecta this stock needs to turn this trend around. It is nice to see a company looking out for it's shareholders when times get tough. The future is very bright for this company, and this looks like a good time to hop on board.

Disclosure: Author is long FMCN.