Thursday, April 22, 2010

Oops - I did It Again

Yesterday I did buy another stock that is not on the list (but should be). It is CCME and is another Chinese company (yes I know these stocks have underperformed for me of late, but the alloure of cheapness plus growth potential is hard to resist). They are involved in advertising. What made them irresistable to me was a couple of points (China MediaExpress Holdings, Inc. Announces 2009 Fourth Quarter and Year-End Financial Results):
  1. They expect to make $71 to 75m in 2010 (strong growth over the $56m in 2010)
  2. Starr Intl just invested $30m in them. For those that do not know, Starr is Hank Greenberg's investment vehicle (former AIG CEO). He is extremely familiar with China as AIG (many people do not know this) actually started in Shanghai post WWI.
Here are their key stats (I think the only reason they are not on the list as they show cumulative income in 6 month chunks as opposed to quarterly):

+ Operating Income After Depreciation 56.64
- Minority Interest - Income Account -
= Income for Calculation 56.64

Diluted Shares Outstanding 29.137

Share Price 12.29
+ Market Cap Calc 358.09
+ Preferred Capital -
+ Debt in Current Liabilities -
+ Long-Term Debt -

Cash and Short-Term Investments 57.15
- Excess Cash 47.13
= Enterprise Value 310.97

+ Property Plant and Equipment - Net 11.07
+ Receivables 12.57
+ Inventories -
+ Other Current Assests 0.25
+ Working Cash 10.02
- Accounts Payable 2.18
- Current Liabilities - Other 20.66
= Invested Capital 11.07
Earnings Yield 18%
ROIC 512%

1 comment:

TK said...

Hey Marsh - I'm one of your subscribers! I know, it's a small group. I started following you because I am doing MF investing myself and wanted to see how it was going for other people.