Phoenix Satellite Television Holdings shares have been soaring recently from the ashes of the autumn correction which shook technology, media and telecommunications plays.
The broadcaster to 42 million homes in China is up 33.98 per cent from a low of HK$1.53 on October 18. It closed on Friday at $2.05 on the back of six consecutive rising sessions.
The question now is whether Phoenix can keep the run going or whether shareholders are skating on thin ice.
For the bulls Phoenix is a rare and valuable bird as the only Hong Kong-listed company tapping into the mainland television advertising market, which has grown at a blistering 48 per cent per year for the past 10 years.
'We are big buyers,' Deutsche Bank Hong Kong research head Archie Hart said. 'The earnings are coming through. The fact that they are breaking even in year four [of operations] is pretty creditable to them.'
Salomon Smith Barney analyst Norman Waite said his projections showed earnings per share would double to two cents in the current year to June, then bounce to five cents and nine cents in the next two years.