XFML - Pick of the Day

XFML chart is looking good this morning, riding the back of yesterdays positive news:

http://stock-promoter.thesubway.com/thesubway-clients/xfml-pick-of-the-day/351

NEWS:

Xinhua Finance Media Limited (”XFMedia” or “the Company”; Nasdaq: XFML), a leading media group in China, today announced its unaudited financial results for the second quarter ended June 30, 2008.

“Despite a challenging operating environment for the quarter, we are proud to announce adjusted EPS expectations above our Q2 guidance,” said Ms. Fredy Bush, XFMedia’s Chief Executive Officer.

“The Broadcast Group continues to deliver high margins, and we intend to further invest and expand the television business with a particular focus on sports. We believe this will be a significant driving force to our business over the next several years,” Ms. Bush added.

“We expect our future growth to be driven by the expansion of our media assets and distribution channels, and the integration and coordination of such efforts across our operating groups. Our television viewer demographics are very strong and combined with our existing core competence, XFMedia today is able to penetrate a significant group of households in China, providing us with a strategic entry point to build on our advertising revenue,” Ms. Bush said.

Second Quarter 2008 Financial Results

Net Revenue

Net revenue for the second quarter of 2008 was $48.9 million, up 69% year- over-year from $29.0 million in the second quarter of 2007, or up 33% sequentially from $36.7 million in the first quarter of 2008.

Net Revenue by type and business group

The following is a summary of net revenue by business group reconciled to types of revenue provided in the accompanying consolidated financial statements for the second quarter of 2008.

Advertising Group

Net revenue for the Advertising Group for the second quarter of 2008 was $29.9 million, up 79% year-over-year from $16.7 million in the second quarter of 2007, or up 39% sequentially from $21.5 million in the first quarter of 2008.

Broadcast Group

Net revenue for the Broadcast Group for the second quarter of 2008 was $14.0 million, up 92% year-over-year from $7.2 million in the second quarter of 2007 or up 29% sequentially from $10.8 million in the first quarter of 2008.

Print Group

Net revenue for the Print Group for the second quarter of 2008 was $5.0 million, up 1% year-over-year from the second quarter of 2007, or up 14% sequentially from $4.4 million in the first quarter of 2008. The year-over- year decrease in the magazine group is mainly due to the regulatory environment which causes delay in launch of certain marketing events.

Gross Profit

Gross profit for the second quarter of 2008 was $21.1 million, up 80% year-over-year from $11.8 million in the second quarter of 2007, or up 61% sequentially from $13.1 million in the first quarter of 2008. Adjusted gross profit (non-GAAP), defined as gross profit before amortization of intangible assets from acquisitions, for the second quarter of 2008 was $22.9 million, up 77% year-over-year from $12.9 million in the second quarter of 2007 or up 51% sequentially from $15.1 million in the first quarter of 2008. We provide adjusted gross profit to break out the amortization of intangible assets from acquisitions charged within the cost of revenue. Chart 6 provides a breakdown of adjusted gross profit by business group.

CHARTS:

MACD is about to turn positive:

XFML is above the support level of $2.59 on our Phils X1 and has been trying to push above SUPPORT Level 3 @ $3.03.  If XFML does this today with strength we will look to add to our position.

Our Phils X2 has just turned blue signaling institutional buying coming in:

Our daily chart makes us cautious as we will look for renewed buying to come in this morning before adding to our position:

The 15 MINUTE looks better to us than the daily and could be the beginning of a longer move upward in XFML:

Our WEEKLY chart adds to our anticipation of a move higher in XFML as it signals a longer trend with the red Stochastic line crossed through the white:

Finally we are putting a stop in XFML #$2.59 on our Phils X1 and @ $2.85 to limit any potential losses.