1. overnight market pressure Fears over interest rate hikes in mainland China due to mounting inflationary and energy costs sent shares tumbling in Shanghai and Hong Kong Wednesday. The Shanghai Composite Index plunged 154 points, or 4.1%, to 3579.15, while Hong Kong's Hang Seng tumbled 652 points, or 2.5%, to 25,610.22.
2. Shanghai halt on outside billboards and investors reading the 20F that FMCN has 200 5' by 5' led billboards in Shanghai. This will cause some pressure. (Does anyone know what percent the 200 is of the total billboard market in Shanghai?...probably 5-10%?)
Mr Cool, there are 200,000 billboards in Shanghai. FMCN has 200 5 foot by 5 foot LED billboards. So they have a low percent of what is catching eyeballs; albeit high tech vs paint and paper. Relativly speaking thses are rather small billboards. I don't know what teh competition is for the same space. I'm not overly concerned about revs or margins in this space with the current exposure. I'm concerned about growth in total LED boards to replace other billboards. Also, there is no info on their billboards in other cities.
limited supply = more pricing power. but why is shanghai limiting billboards in the first place? could it be that they would be interested in eliminating them altogether? risk risk risk... sucks that things just never go smoothly.
I agree that the revs from ads are important but there could be a halt to top line growth for that piece of the market segment (specific to Shanghai LED boards) which is very profitable and locked up for years. They don't mention any of these large LED billboards in any other cities in their 20F. So, it would be nice to know the market segment better by city for future pentration too. The volume today isn't big so there is some profit taking too on the back of the items I pointed out earlier. They also have that huge barge display that generates big revenue alone. It lights up a large area.
I'm holding 6750 shares at Xbar of 42.00 and will continue to hold.