Focus Media (FMCN) Rallies as Barron's Calls the Stock 'Oversold'

Shares of Focus Media (Nasdaq: FMCN) were highlighted in this weekend's edition of Barron's as a potentially oversold stock. The article notes that Focus Media's stock is down about 90% in the last 14 months, and with a $916 million market cap, the market is actually pricing the company's remaining assets (following the sale of its core business to Sina (Nasdaq: SINA) last month) as a goose-egg.

Despite the market sentiment, Barron's argues that this far from the truth as Focus Media will relinquish "a coveted display network that drove 73% of gross profits... an Internet advertising unit, a movie theater advertising network, billboards and roughly a third of the company's $381 million cash stash" following the Sina deal. Further, Barron's points out that while media companies certainly feel the pain during recessions, "Chinese online ad spending is in its infancy and growing fast."

Focus Media's stock price is up sharply this morning on the Barron's tout. The stock most recently traded at $7.81, up 12.2% from Friday's closing price.

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