WPP LN, OMC

WPP PLC, Omnicom Group Inc.

TMT


Presented:02/18/2016
Price:£14.71
Cap:$29.77B
Current Price:£7.59
Cap:$12.57B

Presented

Date02/18/2016
Price£14.71
Market Cap$29.77B
Ent Value$31.88B
P/E Ratio15.06x
Book Value£5.77
Div Yield2.6%
Shares O/S1,294.75M
Ave Daily Vol3,064,904
Short IntN/A

Current

Price£7.59
Market Cap$12.57B
WPP Plc engages in the provision of communications services. It operates through the following segments: Advertising and Media Investment Management; Data Investment Management; Public Relations and Public Affairs; and Branding and Identity, Healthcare, and Specialist Communications. The Advertising and Media Investment Management segment provides advertising; above and below-the-line media planning and buying; and specialist sponsorship and branded entertainment services. The Data Investment Management segment includes TNS, Millward Brown, The Futures Company, and other specialists in brand, consumer, media, and marketplace insight. The Public Relations and Public Affairs segment comprises of corporate, consumer, financial, and brand-building services from public relations and lobbying firms such as Burson-Marsteller, Cohn & Wolfe, H+K Strategies, Ogilvy Public Relations, and Finsbury. The Branding and Identity, Healthcare, and Specialist Communications segment covers consumer, corporate, and employee branding and design services; covering identity; packaging; literature; events; training; architecture; healthcare marketing solutions; custom media and multicultural marketing; event, sports, youth, and entertainment marketing; corporate and business-to-business; and media, technology, and production services. The company was founded in 1985 and is headquartered in London, United Kingdom.

Publicly traded companies mentioned herein: Ebiquity plc (EBQ LN), Omnicom Group Inc (OMC), WPP plc (WPP LN, WPPGY)

Highlights

The presenter is short shares of WPP and Omnicom (OMC) , expecting significant downside in these stocks as a result of structural pricing compression and increased transparency of the ad buying process to emerge from a probe sponsored by the US Association of National Advertisers. The presenter states it will be difficult to quantify the extent of the downside, but thinks one can make a case for a 20% - 30% decrease in earnings.

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Idea Discussion

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