Focus Media Shares Resume Momentum (NASDAQ:FMCN)

Investors in Focus Media Holding Limited (ADR) (NASDAQ:FMCN) have benefitted from the run up in share price to nearly double that of early July (100% return).  Now, shares are continuing their upward trend as they notch new highs. 

Digging into the fundamentals of the company, we found many positives.  The most recent quarterly earnings report was significantly higher than analysts’ consensus forecast.   Earnings growth in the past year has accelerated rapidly compared to earnings growth in the past three years. Also, analysts have increased quarterly earnings estimates for FMCN. 

Technically speaking the stock is very strong as well with relative price change and consistency high and the closing price above the 50-day moving average.

Unfortunately the stock may be overvalued right now, but as we all know, that does not mean that shares will not continue to appreciate. Some negatives for the valuation are the price-to-earnings multiple is higher than the average for other stocks, and also the ratio of FMCN's price-to-earnings multiple to its five-year growth rate is above the average of other stocks.

Checking at Seeking Alpha, they share this information:

Based on an audience-centric approach, Focus Media provides a broad portfolio of media advertising platforms, including our Commercial Location Network, In-store Network, Poster Frame Network, mobile handset advertising network (through Focus Media Wireless) and Outdoor LED Network. Each of these media platforms covers specific demographics of higher-than-average-income urban consumers at various out-of-home media interaction points, from office lift lobbies to entertainment and social venues, shopping districts, mobile phones and residential complexes.

Fundamentals
2009 Revenue: $505 million
2010 Revenue(expected): $545.9 million
2010 Year-Over-Year Growth: 8.10%
Earnings Per Share: $1.18
P/E: 23.31
Cash Per Share: $4.88
Cash Per Share/PPS: 17.75%
2011 expected Revenue: $596.21
2011 Year-Over-Year Growth: 9.22%
2011 Earnings Per Share: $1.34
Forward P/E(2011): 20.52