The Iconoclast Investor

For an investment opportunity you can take advantage of today, I suggest VisionChina Media (VISN).  Both Cabot Market Letter and Cabot China & Emerging Markets Report recommended it as a stock to watch last month, and I like the way the stock has acted since then.  It looks like it’s getting ready for a good run.

Here’s what Michael Cintolo, editor of Cabot Market Letter, wrote back on July 2.

“VisionChina is following in the footsteps of Focus Media (FMCN), a former leader that pioneered the use of flat-panel TVs in high traffic areas in China to rake in advertising fees.  Focus Media’s concentration was in places like grocery stores and elevators, but VisionChina has taken the idea to buses and subways, where it finds a captive audience.

VisionChina has differentiated itself by inking deals with local broadcast stations, allowing it to provide real-time content (mainly sports and news) on its TVs … along with the advertising.  The firm already has more than 48,000 displays in place, and that figure is rising rapidly as more deals are signed.

Growth has been stunning, with revenues up 495% and 304% the past two quarters, and earnings totaling $0.08 per share each quarter, up from losses a year ago … VISN could be in the middle stages of forming a new launching pad, so keep it on your watch list. WATCH.”

Back when Mike wrote that, the stock was at 16.  Since then it’s been up to 25, and down to 17; it’s quite a mover!  But the volume trends tell us the stock is being accumulated, and that the next big move–though it may take some time—is likely to be up.  I suggest you put it on your watch list, too.