Focus Media - The Cardinal Post: Iv Interpretations Of The Accounts

Focus Media is - on the published accounts - a really profitable company. It has 63 per centum margins gross margins together with internet margins over xxx per centum (all cash returns) inwards a concern where industry comparable internet margins are mostly substantially lower.

However, over time, Focus Media has taken this post) is consistent amongst Interpretation D. Previous disclosures where they seem to direct maintain overstated the issue of screens are besides consistent amongst Interpretation D.

To the Private Equity buyers: inwards doing due-diligence on this companionship you lot request to intend most Interpretation D together with how you lot examination for it. Because if D is right hence - dearest Private Equity buyers - you lot are buying a turkey.

What is the stock worth inwards interpretation D?

Interpretation D is the interpretation amongst the sharpest negative implications for the stock. What is says is that the entire numbers of this companionship are garbage - together with the existent profitability - evidenced over the concluding 5 years - is probable negative or somewhere close it.

If interpretation D is right the stock should settle at a really depression value. (I direct maintain only about ideas on how to endure out the value but they are quite speculative... diligent readers mightiness brand only about estimates themselves. My estimates come upwards inwards nether $2 at a maximum...)

For consideration.








John