Comments on: Focus Media / Sina… An Unexpected Transaction http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/ Dynamic Investments for Exceptional Traders Tue, 31 Jan 2012 01:21:02 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Zachary Scheidt http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/comment-page-1/#comment-5613 Zachary Scheidt Mon, 29 Dec 2008 23:46:49 +0000 http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/#comment-5613 The only explanation I can come up with is that traders do not expect the deal to go through. If SINA were to back out of the agreement This would likely cause FMCN to drop even more because investors now have much more uncertainty to work with. At this point the deal is listed as "definitive" but I do not know if there is a breakup fee as part of the agreement. My understanding is that it does not require shareholder approval. Thanks for the comment! Zach The only explanation I can come up with is that traders do not expect the deal to go through. If SINA were to back out of the agreement This would likely cause FMCN to drop even more because investors now have much more uncertainty to work with.

At this point the deal is listed as “definitive” but I do not know if there is a breakup fee as part of the agreement. My understanding is that it does not require shareholder approval.

Thanks for the comment!
Zach

]]> By: v2x http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/comment-page-1/#comment-5608 v2x Mon, 29 Dec 2008 16:19:50 +0000 http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/#comment-5608 correction, stub not stud. correction, stub not stud.

]]> By: v2x http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/comment-page-1/#comment-5607 v2x Mon, 29 Dec 2008 16:19:11 +0000 http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/#comment-5607 The stud has traded at negative levels, opened in the range of 4 to 10 cents today. Could there be something else one is missing here? Thanks in advance, v2x The stud has traded at negative levels, opened in the range of 4 to 10 cents today. Could there be something else one is missing here?

Thanks in advance,

v2x

]]> By: Zachary Scheidt http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/comment-page-1/#comment-5589 Zachary Scheidt Fri, 26 Dec 2008 19:00:54 +0000 http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/#comment-5589 David, I think you are correct. Its difficult to nail down just what that "stub" is worth because we don't know just how much overhead will be cut once the divisions are sold to SINA. If they become a cash-bleeding entity then all bets are off. But it would seem the stub is worth more than the $1.20 which the market is pricing. Boris, I'm not comfortable with SINA yet. Nor do I want to own BIDU. They both bear close watching and can give us good clues into the macro trends. But at this point I don't have much of an edge on either. Happy Holidays to all, Zach David, I think you are correct. Its difficult to nail down just what that “stub” is worth because we don’t know just how much overhead will be cut once the divisions are sold to SINA. If they become a cash-bleeding entity then all bets are off. But it would seem the stub is worth more than the $1.20 which the market is pricing.

Boris, I’m not comfortable with SINA yet. Nor do I want to own BIDU. They both bear close watching and can give us good clues into the macro trends. But at this point I don’t have much of an edge on either.

Happy Holidays to all,
Zach

]]> By: BorisB http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/comment-page-1/#comment-5586 BorisB Fri, 26 Dec 2008 16:48:26 +0000 http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/#comment-5586 looks like an admirable attempt to improve Sina's ad-network presence, still after 2 years of close watching, Sina's positioning continues to lag Baidu. Sina does have close ties with Google, but will this "plus" transfer to F/M properties? not sure. looks like an admirable attempt to improve Sina’s ad-network presence, still after 2 years of close watching, Sina’s positioning continues to lag Baidu. Sina does have close ties with Google, but will this “plus” transfer to F/M properties? not sure.

]]> By: david simms http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/comment-page-1/#comment-5581 david simms Thu, 25 Dec 2008 02:34:43 +0000 http://zachstocks.com/2008/12/focus-media-sina-an-unexpected-transaction/#comment-5581 Zach, Just wanted to point out that you have not factored the close to $3 a share FMCN currently has on it's balance sheet. At current valuations, market is not ascribing any value to the stub. Your thoughts? Happy Holidays. David Zach,
Just wanted to point out that you have not factored the close to $3 a share FMCN currently has on it’s balance sheet. At current valuations, market is not ascribing any value to the stub.
Your thoughts?
Happy Holidays.
David

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