A Burst of Advertising Pushes TV Providers Higher (CGLO, AMCN, VISN)

In varying formats, China Global Media Inc (OTC:CGLO), AirMedia Group Inc. (ADR) (NASDAQ:AMCN), and VisionChina Media Inc (ADR) (NASDAQ:VISN) have all seen TV-related climbs in share valuation as advertising has increased and old troubles have been dealt with.

CGLO stock has gone from a Jan 10 price of $1.46 to today’s current price of $1.84; a gain of 26% based on a Jam 9 announcement that one of the Company’s subsidiaries has entered a one-year Television Advertisement Agreement with Guangzhou Aoda Biological Beauty and Health Technology Development.

The total advertising fee that CGLO will receive is approximately $2.5 million that will be recognized in the 2012 fiscal year. CGLO will act as the agent in placing Aoda’s products on the Hunan Satellite Television Channel, one of the most popular province level satellite television channels in China.

And Airmedia Group, which operates advertising-supported television screens in 37 Chinese airports, was ranked number 5 out of 10 for the “Top 10 best-rated Advertising stocks” by a group of industry analysts late last month.

AMCN shares were trading in the $2.35 range on Nov 16 and are currently trading in the $3.70 range; a gain of 57% in two months based on new advertisers coming on board.

And VisionChina Media, which operates an advertising network using mobile digital television broadcasts to deliver content and advertising on mass transportation systems, including subway platforms and buses has also seen its shares stage a bit of a bounce back from a Nov 29 price of $1.09 to its current price of $1.25; a gain of 14% in six weeks. VISN was plagued with court settlements in Nov, but that was then and this now… 

I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.