Hardware, software and expert advice for digital signage and kiosks
 Home Products Solutions Blog Support Company News Contact
Customer Login 
Digital Signage Insider SignageWire
Latest Articles Full Article List

SignageWire

Focus Media Announces US$100 Million Share Repurchase Program

Author: WireSpring on 2008-07-17 22:21:28

Quamnet (whoever they are) writes:

Focus Media Holding Limited (Nasdaq: FMCN), China’s leading multi-platform digital media company, today announced that its board of directors has approved a share repurchase program. Under the terms of the approved program, Focus Media may repurchase up to US$100 million worth of its issued and outstanding American depositary shares (“ADSs”). The repurchases will be made from time to time on the open market at prevailing market prices or in block trades. The purchases will be made subject to restrictions relating to volume, price and timing. The timing and extent of any purchases will depend upon market conditions, the trading price of its ADSs and other factors. Focus Media expects to implement this share repurchase program over the course of the next 12 months, effective immediately, in a manner consistent with market conditions and the interest of the shareholders. Focus Media’s board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size accordingly. Focus Media plans to fund repurchases made under this program from its available cash balance.

Our take:

Bill wrote about Focus Media a few months ago at digital signage news, suggesting that (while he's not a financial planner, and thus not qualified to give financial advice) it would seem that Focus Media's stock price undervalues it to a fair degree.  That has continued to be true (assuming it was true to begin with, of course), especially in light of their strong performance in every sector where they're not currently fighting the Communist government.

Typically share repurchases take place when financially strong companies feel that their share price is low enough that the best use of their capital is to reduce the number of shares floating on the public market.  Considering the amount of cash that Focus has in the bank and their presumed strength, it seems like a smart move on their part, and perhaps an indication to the rest of us.


Comments (0)

Subscribe to comments for this article | Trackback

Leave a Comment

Name:
Email Address:
(required but won't be shown)
Website:
Comment:
(max 2000 characters)
Are you a human? If so, uncheck this box:



Digg this! | Del.icio.us


Previous Article: VideoMining's New Online Tool to Enable Real-Time Access to Shopper Metrics
Next Article: Start-up Empowers Advertisers with Free Out-Of-Home Media Planning and Buying Tools

Back to the SignageWire front page

LEGAL STUFF: SignageWire is written by the WireSpring staff but may periodically include articles by guest authors. The author of each article is clearly identified at the start of the article. The opinions expressed in each article are solely those of the author, and do not reflect the official opinions of WireSpring Technologies, Inc. All SignageWire articles are copyright © 2008-2009 WireSpring Technologies, Inc. or the guest author, as appropriate. All content besides the actual article text, e.g. surrounding branding and informational content, is copyright © 2000-2009 WireSpring Technologies, Inc. All rights reserved. Except as provided in WireSpring's Republishing and Syndication Policy, no SignageWire content may be reproduced, in whole or in part, without WireSpring's express written consent.

Subscribe via RSS
If you use one of these services, click the button to subscribe to automatic updates:


For advanced users or those with other services, here is the XML link:
Subscribe via XML/RSS/RDF Subscribe via XML/RSS/RDF

What's this blog about?
Whether you're new to digital signs and kiosks or you've been in the business for years, you've probably noticed that nearly every announcement and press release contains a huge amount of hype. Our goal with this blog is to provide coverage of the more interesting happenings, along with commentary to give you a reality-check on what matters and what's just fluff. We post new articles several times a week.

Questions?  Start a live chat • Call us at (800) 989-9269 or +1 (954) 548-3300 • Get pricing and trial info
Copyright © 2000-2009 WireSpring Technologies, Inc. All rights reserved. Except as provided in our Republishing and Syndication Policy, no content on this website may be reproduced, in whole or in part, without our express written consent. View our privacy and legal info.