My investment idea today is VisionChina Media (VISN), a Chinese company that has over 82,000 video screens in buses and subway trains in 18 Chinese cities.  What really sets its product apart from other out-of-home Chinese advertisers like Focus Media is that the broadcasts are digital, real-time programming that can be customized to show either local or national weather, sports and breaking stories.

Because content is local and fresh, viewership is increased, which allows VisionChina to charge for advertising time just like a broadcast TV station.  The company forges alliances with local broadcast stations to supply content.

Financial results have been outstanding, especially for a company founded just in 2005.  2007 sales were up 659% over 2006, and 2008’s gain hit 254%.  Earnings turned positive in Q2 2007 and year-over-year growth has fallen in the last couple of quarters only because Q2 and Q3 2008 gains were insanely huge.  After revenue of $104 million in 2008, analysts expect 2009 sales to hit $122 million with earnings of 37 cents a share.

VISN has been trading sideways since the beginning of December, which has created a nice base for further advances.  The stock is a little too low-priced for inclusion in the Cabot China & Emerging Markets Report, but buying on any breakout above 12 should prove profitable, as that will bring the stock into range of the institutional investors who actually move the market.