07-07-2009 CMM - China Mass Media
QUICK ALERTED PRICE : $5.25 (07/06/2009)
TYPE OF PLAY: GROWTH / FUTURE PROSPECTS
China Mass Media provides a full range of advertising services, including advertising agency services, creative production services, public service announcement sponsorship services, and other value added services.
In the first quarter of 2009, China Mass Media exceeded the high end of the Company’s previously issued guidance, increasing 11.5% from the first quarter of 2008 and 93.2% from the fourth quarter of 2008 to RMB 149.8 million (US$ 21.9 million). This was done during a substantially hard time for the economy and their prospective customer base. We believe it speaks volumes to the quality of the management and the prospects of further growth not only during a soft economy, but even better prospects during any sort of recovery.
The companies CEO had this to say about the companies outlook:
"Looking forward, we believe that advertising demand may recover considerably in the second half of this year as the economic stimulus package begins to take effect in China, the global economy continues to gradually improve and domestic consumption starts to pick up."
CMM has officially forcasted 17.5% to 39.5% growth in their second quarter. Because of their stout business growth and a low availability of shares, we feel this is a potentially explosive situation once the company gets to be more well known. We feel that the company is undervalued and underfollowed by analysts due to it's quiet IPO during troubled market times.
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Links for further reading:
CMM homepage
SEC filings for CMM
General CMM statistics
