I sent this email to the Citigroup analysts: Dear Jason Brueschke:
I’m sure you will have a great list of questions for the analysts’ conference. I have a large position with FMCN in my Smith Barney/Citi account (over10,000 shares) and have a few questions of my own. Perhaps you could consider these questions as part of your research and dialog with the company. Please RSVP to this email at your convenience.
Concerning the Mobile Handset Ad business what is their strategy and what tactics are they deploying given that the following conflicts exist? 1. April 10 Revised Guidance for Mobile Ad ”Going forward, we will focus on building a pull- based advertising model for our mobile business and will only send advertising information to consumers in China based on their explicit consent.” 2. Recently classified as discontinued business and not including revenue in total revenue. 3. It is still a product on their web site; so they are still looking for business. 4. There is still revenue. Is there an upside?
Concerning outdoor LED 1. Web site continues to show 200 displays in Shanghai. What about other cities like Macao and Beijing? 2. Is there going to be any organic growth in this business? 3. What is the competitive situation? 4. And what about the recent Shanghai restrictions?
Last year Jason Jiang talked about spinning off the Internet and Mobile businesses. When he moved over to head those businesses I thought it was a precursor for the spinoff. What are the current thoughts concerning such a move?
In reading the 20F it is difficult to understand who owns the restricted shares of which there seems to be around 72 million ADR. The float is only around 55 million shares. 1. Can this be sorted out and what are the lock up restrictions? 2. Do you have concerns about this large imbalance and what it may do as lock-ups expire?
Have they bought back shares already?
Are energy costs passed on to advertisers or are those costs eating into margins?