Focus Media FMCN is on the Focus
By stlplace on Feb 26, 2007 in Stocks, China
It will report the earnings after market today. The Street est. earning is $0.62, but I think the whisper number is much higher. In other words, even if it beats the earning, if it issues a soft guidance, the stock may get punished tomorrow. This is the danger of “playing ERs” with hot stocks. Interestingly, Sage Brennen has this question regarding “does this screen work”. Actually I had same question before, one of the reasons I did not buy FMCN.
If FMCN crashes, HMIN may also crash tomorrow, due to the correlation between two hottest Chinese stocks. This may be a short term buying opportunity for HMIN, but again HMIN’s valuation is not cheap if we intend to hold it for the long term.
On a separate matter, Trina Solar Limited (TSL) more than doubled since its IPO last December. What can I say besides “wow”? Chinese solar panel manufacturers are so hot, especially after “Green themed” Oscar last night.
