AirMedia Group Inc (ADR) (NASDAQ:AMCN)
Shares of China-based AirMedia Group Inc (ADR) (NASDAQ:AMCN) are up for the fourth day in a row. Last Friday, AMCN shares established a new 52-week low and closed at $1.40 and, with 45 minutes left in today’s trading session, are hovering around $2.35. Today’s volumes have been this week’s heaviest so far. Over 3.1 million shares have traded hands and the listed 30-day, daily average volume for shares of AMCN is just 328,670.
AirMedia Group Inc (ADR) (NASDAQ:AMCN) sells advertising on its air travel advertising network. AirMedia also holds concession rights to install and operate Wi-Fi systems on trains, administered by over eight regional railway administrative bureaus in China, and on various long-haul buses in China. AirMedia has access to 71,900 airplane digital television screens on over five airlines, including Air China, China Eastern Airlines, China Southern Airlines, Shanghai Airlines and Xiamen Airlines. It also holds concession rights to operate the advertising media platforms at Sinopec gas stations across China.
While AMCN shares have gained over 27% during the past week, they have lost over 22% YTD, and are down over 50% for the year. However, interestingly, AMCN shares have been trading at a discount to their cash per share figure for some time. Financial data providers have AMCN’s cash/share value listed at $3.90. A review of historical prices shows that AMCN shares have traded over $3.50 just three times since last July. However investors should be aware that AirMedia Group Inc (ADR) (NASDAQ:AMCN) is based in China and some observers sometimes doubt the veracity of financial statements that lack a similar oversight structure as their American counterparts. Its also relevant to observe that sales have been steadily declining since 2012 when the company posted a figure over $286 million only to post a figure of $50.2 million in 2015. Similarly, earnings losses have widened over the years. In 2013, shareholders lost (-$0.48) per share and that loss expanded to (-$1.16) by 2015.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.