Jim Trippon, China Stock Digest
Jim Trippon CPA, is the editor-in-chief of China Stock Digest, America’s number one performing retail China investment newsletter, as rated by Dow Jones’ Hulbert Financial Digest. He is America’s foremost authority on China investing, using proven techniques and principles. Mr. Trippon serves as an investment advisor to corporate pension plans, trusts, and high-net-worth families. A former Price Waterhouse CPA who has worked extensively inside China, he has successfully invested in China’s financial markets for years. Mr. Trippon’s team of financial analysts is based in Hong Kong, Shanghai, Taipei, and Beijing. He leads an annual China Investors fieldtrip, a two-week trade mission to China that provides behind the scenes access to China’s business, academic, and political elite while exploring China’s ever changing economy. Mr. Trippon is an on-air contributor to CNBC, CNN, Fox News, CBS Marketwatch, and numerous other television networks.
Focus Media (NASDAQ: FMCN)
Founded only four years ago, Focus Media now calls itself China’s largest out-of-home media company (that means advertising seen anywhere except in one’s home). In practice, that means the company has blanketed China’s first and second tier cities with tens of thousands of display ads in a variety of vivid advertising platforms. Focus Media is growing powerfully on the strength of a rapidly expanding out-of-home advertising business in a booming economy. With revenue growth in all of its corporate sectors expanding at approximately 100% year over year, this company is delivering unprecedented profitability.
With the Beijing Olympics approaching, we expect an extra surge in out-of home advertising revenue and demand. The company is aggressively pushing its pricing to the market’s tolerance and expanding its network. 2008 should be a banner year for Focus Media. Although competitors are emerging, Focus Media continues to stake out new territory with a presence in ninety cities, operations in the special administrative zone of Hong Kong, and all but one mainland province. Barriers to entry by new competitors in this field are quite high and Focus tends to buy up serious competition. It’s network throughout China gives the company unique advantages.
Focus Media appears to be well positioned to continue growing earnings in tandem with the growing middle and upper class that the company has targeted in China. The company has indicated it may also pursue expansion in other emerging Asian nations. The upcoming Beijing Olympic Games are an especially powerful driver for outdoor advertising awareness in China’s major cities. Furthermore, the Chinese government’s drive to expand the economy into more remote cities has opened new territory for the company to expand regionally. Increasingly, the Chinese people are spending more time out of their homes, in their cars, at their offices and on their mobile phones, giving Focus Media more exposure to a captive audience.