As you may know I’m a huge bull on CCME. I’ve been long since the 8’s, but most recently since $10.68 and adding in 11’s. The company just announced today it will meet 41m in income for the 4th quarter of 2009. What people are missing is the management may not have met their goal of 42m which would provide them with another 1 million shares. This is very good for the company either way. If they didn’t hit their personal goal from the financeers it means less dilution for us, although that may be offset by the 1m shares that star would receive if they didn’t. If management did make their numbers, it means they get their shares and they are executing on 12 cylinders. Either way there were no expectations, no analyst covering it, this is an entirely new business and it looks like we’re going to have a great year ahead. It may be a net zero effect on the EPS either way, but there’s no denying that 41-42m number is just awesome.
More important is they may actually get some benefit for cashing out the warrants early before the stock actually jumped. In other words we may see an additional 1m or thereabouts added to the bottom line due to the value of the warrants when they were cashed in.
So the next thing people were waiting on was earnings from FMCN. A company in a similar business based in China, they blew away their numbers and their trading over 6% in the after hours.
So the next thing people were waiting on was earnings from FMCN. A company in a similar business based in China, they blew away their numbers and their trading over 6% in the after hours.
We were also waiting on some analyst coverage. Check out the attached document, how does a $28 target sound to you? It’s music to my ears. I sold just under 5% of my position today just incase I needed to support it again in the 11’s. All indications are that I won’t need to, but in this market you never know.
