This week, we examine a pair of small-cap media plays in China: a broadcaster (providing financial content) and a recruitment firm that publishes one of China's leading newspapers and websites for job seekers.

"With a recession nipping at our heels here at home, is it even possible to find an undervalued, bubble-proof Chinese stock these days?" asks Jonas Elmerraji in The Penny Sleuth.

"One company is looking pretty salacious for the American investment dollar right now: Xinhua Finance Media Limited (Nasdaq:XFML)," he says. The stock has a market cap of $282 million.

The company, he says, is a media operation that creates and broadcasts finance and entertainment content to millions of Chinese people. But, he adds, "Here's the kicker: the company targets high net worth individuals in China. We're talking professionals who can give advertisers the most bang for their buck (or yuan, as the case may be)."

XFML is an "interesting story," he says, because it takes middle-class Chinese consumers on "from all sides," including print, TV broadcasts, online ads and mobile devices that reach more than half a billion people.

"And management's no slouch either. Their CEO was chosen as one of The Wall Street Journal's Top 50 Women in 2004," Elmerraji says.

The company has only been listed here in the United States for the past year, but he says it’s already posted positive earnings, a double-digit profit margin, and some impressive net assets on the books. "How impressive?” he asks. “More . . .

For access to the full article, you must be a registered member - it's FREE.