Chimin Sang

US Market Volatility a Boon to Chinese Stocks

Shaun, I am glad to see you are long in FMCN.

Short Seller Prods Internal Accounting Probe Of Focus Media

This is sort of equivalent to Steve Jobs backdating Apple options...

Related party transactions are quite common in China -- there is an OFFICIALLY accepted accounting item in China accounting system to accommodate gifts between related parties.

This short seller is very screwed up.

Focus Media: Benefiting From the Chinese Economic Boom

9 months ago, FMCN was priced at $30 (split adjusted). Today, FMCN made its 52 week high at $46. A whopping 50% increase.

The uptrend is not yet over. I am very confident that FMCN will move above $50 before the summer is over.

That should say something about Shaun Rein's research?

Shaun does have his point. However, put yourself in an advertising company's shoes, what channel choice do you have and what kind of people do you want to reach?

People rarely like to view commercials. Who doesn't know it? If you can invent a channel that has higher acceptance ratio than FMCN, then certainly you can take away Focus Media's market. But where can we find your invention?

When we think about effectiveness, let's talk about relevant effectiveness, not the absolute effectiveness. Yes Super Bowl commercial could be very effective, but how much do you need to pay for that?

For up to now, I don't see the competitive edge of Focus Media getting any blunt. The only question is that if the China economy and market is going to getting slower, which I also don't see happening in the foreseeable future.

Focus Media is a really good safe long position.

Focus Media's Potential WVAS Acquisitions: Do They Know Something We Don't?

I quite doubt that the acquisition is going to be in WVAS, as every knows the trouble of WVAS. Jiang is no fool.

I suspect that the acquistion is for web based advertising company -- smaller allyes. They are dowry for Allyes. One of the reasons that Allyes chose to merge with Focus Media. They can get rid of competitors in the market immediately.