Again.
Shares plummeted 5 percent to $44 today as FMCN's delayed earnings report and a hearing with Nasdaq looms. Though the Co has exercised caution since a short seller filed two letters in recent months, investors are shaking out of China's top advertising agency. FMCN hit an all-time high of $52.09 on June 29, but slumped in the next session on news of the delay. In the first 20 minutes of July 2, the stock dropped to $44.28.
Shares rallied back to $52 intra-day on Monday, but optimism has been replaced by pessimism. Again. The fall, which resumed on Monday, came with strong volume of 4.7 million shares. Volume dipped to 2.8 million shares on Tuesday, but rose to 3.5 million yesterday. Today's drop came on 2.3 million shares.
Is the bottom in for Focus Media shares? If it is, this is another buying opportunity for longs. Still, shares are up 57 percent since early November, and with fears of a correction looming, a lot of investors are taking their profits and relieving themselves of any Nasdaq and SEC related stress.
Disclaimer: Pupule Paul is a skosh long FMCN.
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