PhillyD

Focus Media: May Be Growing Fast But What About The Cash?

They have had no cash flow problem so far ... they're raking it in large quantities (check out cash flow numbers) AND they have alot owed to it in A/R.

This company is a down and out bargin at this price ... has a HUGE MOAT in that there is no other company competing with it for the INDOOR display market. Their internet business is only icing on the cake and if that ever explodes well look at Baidu and others that have extremely high multiples built into its price. I'm sort of shocked that FMCN doesn't have a large P/E. It's prices more like a bank (in P/E world) than an exponentially growing player in the quickest growing economy in the history of the world that still has almost 1 billion more people to get into the middle class!

I'm long FMCN (for disclosure) and will be even longer come Monday morning.

Thanks for listening,

Phil