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Focus Media has an effective monopoly on electronic billboard advertising in China. Most of their buildout cost is now behind them so I expect the margins to expand rapidly as prices remain firm due to lack of competition. This makes their forward PE and EBIT/EV ratio cheap in light of their robust moat.
They have Fortune 10 companies as clients as well as the 2008 Olympics as a possible catalyst for growth. The major risk, as usual with any Chinese stock, is possible government interference.
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