Focus Media Invests $61M In VisionChina

Piper Jaffray has published a research report on VisionChina Media Inc. VISN after the company announced that Focus Media Holding Ltd. FMCN made a $61M investment in the VisionChina. In the report, Piper Jaffray writes "FMCN announced an investment of $61M in VISN. Additionally, entities controlled by FMCN and VISN CEOs purchased $4M each. Our quick take on the move is that it provides an infusion of capital and a vote of confidence in the VISN model, albeit at a low price. While we hold our nose on the valuation of the deals, we think it could be effective at helping establish a technical bottom for the VISN shares. However, we maintain our Neutral rating until we see evidence of improving fundamentals." Piper Jaffray maintains its Neutral rating and $5 price target. VisionChina Media closed yesterday at $3.87.