Not that FMCN has hit the bottom. More like the stock tripped off a cliff and is clinging on to a stray tree root, finding its footing on a ledge. That's what life with a delayed earnings report and an impending hearing with Nasdaq will do. Since hitting a high of $50 a month ago, the advertising company plunged to $44, then rallied up to $52. Not all was well, however. Investors lost patience as the Co did little to explain the delay other than a situation involving two letters from a short seller regarding company activity in 2005. The stock hit $40 on Friday and today, showed some resillience with a minor gain.
American Bulls has FMCN on confirmed "Buy" status after today's market. The site also has a confirmed Buy on another Chinese stock, SINA. The stock ended a down turn by rallying for a 1.4% gain to $42.39 today.
Sina, the country's top portal, is relatively active compared to volatile stocks like Baidu. Speaking of Chinese stocks, China Analyst has released its list of U.S.-listed stocks from top to bottom in gains and losses year-to-date.At the top is Trina Solar, with a gain of 228%. In all there are 86 listed stocks. While newer companies like Baidu rank pretty high (eighth), long-established stocks like China Mobile (CHL) and Aluminum Corp. of China (ACH) are among the Top 15. The success of Chinese stocks begs the question, of course, of whether they'll survive if and when the rising inflation rate gets out of hand there.
Pupule Paul is long FMCN, SINA and BIDU.
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