Friday, July 11, 2008

The Motley Fool is confused

It's not suprising really, but people are muddling their Xinhua Finance and Xinhua Finance Media (XFML). Now, nobody's going to accuse the Motley Fool of being the world's most reliable source of investment advice, but this one's a real ******'s muddle.

They're comparing the NASDAQ-listed XFML with the NASDAQ-listed China Finance Online. That would be all well and good if they were in the same line of business, but they're not. The company with which the comparison should be made is the Tokyo Mothers-listed Xinhua Finance (parent of XFML). And Xinhua Finance is a much better business than the vastly over-rated China Finance Online in our humble opinion.

XFML is a mini-media conglomerate in the making. CEO Fredy Bush describes it as "a leading media group in China with nationwide access to the upwardly mobile demographic. Through its synergistic business groups, Broadcast, Print and Advertising, XFMedia offers a total solution empowering clients at every stage of the media process and connecting them with their target audience. Its unique platform covers a wide range of media assets, including television, radio, newspaper, magazine, outdoor, online and other media assets".

XFML trades on NASDAQ at a p.e. of around 9.
Xinhua Finance trades in Tokyo at a bargain p.e. of 4.4.
China Finance has no p.e. because it has never made any money.

Beware the Fool.

1 comment:

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