Wpp

[idpickering]

Here's the BBC's offering on this;

WPP chief Sir Martin Sorrell quits advertising agency

The chief executive of the world's largest advertising agency, WPP, is stepping down with immediate effect.

Sir Martin Sorrell has been at the helm of the company for 33 years since taking control in 1986.

The chairman of WPP, Roberto Quarta, will oversee the agency until a new CEO is appointed.

Sir Martin said his position at WPP had been a passion for so long but it was in "the best interests of the business" for him to resign.

He had been under investigation by WPP but had rejected any claim of financial impropriety.

In a statement, the firm said: "The previously announced investigation into an allegation of misconduct against Sir Martin has concluded. The allegation did not involve amounts that are material."

http://www.bbc.co.uk/news/business-43771974

[Arborbridge]

I have immaculate timing. I've been wanting to get on board this apparently well run and reliable company for several years, and did so in November 2017 when the yield seemed a reasonable but not excessive 4.8%.

It's been downhill all the way, not just in terms of price, but it terms of bad news all round. One of the question marks was: what will happen when Martin Sorrell retires? We might find out soon than expected - but perhaps this event will "lance the boil".
To me, the bigger worry is the effect of "disruptors" to the sort of advertising which WPP runs.

Arb.

[idpickering]

I have immaculate timing. I've been wanting to get on board this apparently well run and reliable company for several years, and did so in November 2017 when the yield seemed a reasonable but not excessive 4.8%.

It's been downhill all the way, not just in terms of price, but it terms of bad news all round. One of the question marks was: what will happen when Martin Sorrell retires? We might find out soon than expected - but perhaps this event will "lance the boil".
To me, the bigger worry is the effect of "disruptors" to the sort of advertising which WPP runs.

Arb.

As stated above, I bought into WPP last week, getting in at 1172p per share, buying during a slump in the SP as I like to do if possible. Let's see what happens on market opening tomorrow. Either way, I won't be selling so I guess as a HYPer, it doesn't matter anyway. I'm investing my monthly dollop on Tuesday, so any fall in the SP because of this matter may be another opportunity to top up. I'm primed to buy some more Admiral Group at the moment, but that might change.

Ian.

[bluedonkey]

I have immaculate timing. I've been wanting to get on board this apparently well run and reliable company for several years, and did so in November 2017 when the yield seemed a reasonable but not excessive 4.8%.

It's been downhill all the way, not just in terms of price, but it terms of bad news all round. One of the question marks was: what will happen when Martin Sorrell retires? We might find out soon than expected - but perhaps this event will "lance the boil".
To me, the bigger worry is the effect of "disruptors" to the sort of advertising which WPP runs.

Arb.

Well, I commiserate. It reminds me of when I bought into Glaxo many years ago when the yield for what was seen as a great "quality" stock had risen to, I think, 4%. In retrospect, it was a growth stock in the middle of a transition to ex-growth.

For WPP, I read that it may be difficult for a new CEO to manage the sprawling empire created and autocratically run by MS.

[YeeWo]

Well, I commiserate. It reminds me of when I bought into Glaxo many years ago when the yield for what was seen as a great "quality" stock had risen to, I think, 4%. In retrospect, it was a growth stock in the middle of a transition to ex-growth.

GSK 4.5% of my pot and WPP 6.3%, both are currently underwater as far as my investing goes! Emma Walmsley seems to be doing good things to turn GSK around and WPP is going to get a serious overhaul after Sir Martin. The dividends do seem well covered in both instances and an uplift in the SP is not unimaginable.

For WPP, I read that it may be difficult for a new CEO to manage the sprawling empire created and autocratically run by MS.

The key question is WPP worth more broken-up or in conglomerate form? The parallels with GSK are uncanny, some serious surgery though and both businesses can deliver value for shareholders........

[monabri]

I wouldn't be surprised to see an increase in the share price tomorrow. The possibility of a buy-out (by the likes of Accenture) could be a consideration now that MS is out of the frame.

[MaraMan]

I too am a fairly recent investor in WPP, I really only care about the yield but do think they are better off without Sorrell and I would not be at all surprised if there is a rise in the SP tomorrow. I will stick with it.
MM

[langley59]

To me, the bigger worry is the effect of "disruptors" to the sort of advertising which WPP runs.

Arb.

Agreed that has worried me but I wonder whether the recent questioning of Facebook's business model (and by implication Google's) will help redress the balance in favour of thetraditional advertising agencies?

[idpickering]

WPP heads South 4% on market opening. Early days though.

Ian.

[moorfield]

I wouldn't be surprised to see an increase in the share price tomorrow.

Well, that's gone well.

Anyone fancying the > 5% yield?

[idpickering]

I wouldn't be surprised to see an increase in the share price tomorrow.

Well, that's gone well.

Anyone fancying the > 5% yield?

I did mention further up this thread that I might top up my WPP holdings tomorrow. I am not doing so, and shall watch them for a bit instead, in order to see how they go for the next few weeks, rather than just buying more currently. Maybe next month?

Ian.

[YeeWo]

Anyone fancying the > 5% yield?

- I've just added/levelled-down at 1126p. WPP is now 7.5% of pot, average holding price of 1526p, a loss of 26% on an XIRR of -23%. Not good! The latest broker forecasts today: -

Code: Select all

Date      | Broker          | Recommendation | Price    | Old target price | New target price | Notes     
16-Apr-18 | Deutsche Bank   | Hold           | 1,127.75 |             1510 |                - | Retains   
16-Apr-18 | Numis           | Add            | 1,127.75 |             1515 |             1400 | Retains   
16-Apr-18 | Liberum Capital | Buy            | 1,127.75 |             1750 |             1750 | Reiterates
16-Apr-18 | Shore Capital   | Hold           | 1,127.75 |                - |             1188 | Reiterates
16-Apr-18 | Citigroup       | Buy            | 1,127.75 |             1650 |                - | Retains   


- The dividend seems well covered, though this a massive gamble that the business doesn't need Major Surgery!
- Rather more boringly I rebought some HSBC today at 673p having sold 03 Jan 18 at 758p. Nice, boring, quarterly dividend!
- We shall see......

[TahiPanasDua]

Anyone fancying the > 5% yield?

- I've just added/levelled-down at 1126p. WPP is now 7.5% of pot, average holding price of 1526p, a loss of 26% on an XIRR of -23%. Not good! The latest broker forecasts today: -

Code: Select all

Date      | Broker          | Recommendation | Price    | Old target price | New target price | Notes     
16-Apr-18 | Deutsche Bank   | Hold           | 1,127.75 |             1510 |                - | Retains   
16-Apr-18 | Numis           | Add            | 1,127.75 |             1515 |             1400 | Retains   
16-Apr-18 | Liberum Capital | Buy            | 1,127.75 |             1750 |             1750 | Reiterates
16-Apr-18 | Shore Capital   | Hold           | 1,127.75 |                - |             1188 | Reiterates
16-Apr-18 | Citigroup       | Buy            | 1,127.75 |             1650 |                - | Retains   


- The dividend seems well covered, though this a massive gamble that the business doesn't need Major Surgery!
- Rather more boringly I rebought some HSBC today at 673p having sold 03 Jan 18 at 758p. Nice, boring, quarterly dividend!
- We shall see......

YeeWo,

I find the seemingly boring nature of HSBC to be very appealing. It's my oldest share by far but ignoring the price fluctuations during the banking crisis when it was definitely not boring, it has been a steady income performer for decades. I will never sell my Wui Fung Ngan Hong shares.

TP2

[YeeWo]

YeeWo, I find the seemingly boring nature of HSBC to be very appealing. It's my oldest share by far but ignoring the price fluctuations during the banking crisis when it was definitely not boring, it has been a steady income performer for decades. I will never sell my Wui Fung Ngan Hong shares. TP2

Not wishing to digress too much from WPP, I've held 滙豐 for a long time also. Now although it's a great dividend payer, when you put holdings through an XIRR calculation it becomes quickly clear that 滙豐 isn't the greatest business in TR terms. 4.9% of my portfolio and unlikely to become much more.......(if you want a venerable HK business) 怡和 Insurance is well worth holding : http://www.jlt.com

Tahi - [expletive deleted]
Panas - Hot
Dua - Two

Really?

[monabri]

I wouldn't be surprised to see an increase in the share price tomorrow. The possibility of a buy-out (by the likes of Accenture) could be a consideration now that MS is out of the frame.

well, some yer win, some ya lose....

That's my p/folio reduced by 6% of 3.5% ..there'll be bread and butter only on the table tonight.

[kempiejon]

So far my dividends look unchanged. I'm a little under average weight in WPP but not enough to warrant more money, my next top up will be for Legal and General and perhaps a miner.

This could be the writing on the wall for traditional advertising and the Sorrell hand but how can I know?

[Arborbridge]

Add, stick, twist?

I've room for an extra tranche, but do I want to? Things are so much in the air that I'm poised between "wait and see" and "let's sell out before this drags out too long".

I guess the departure of Sorrell would have been on the cards in the next handful of years, so we are just facing that a little earlier than expected: though it might have been in properly planned way. OTOH, this company could now being going down the route of "not the company story I thought I was buying". In fact, we don't know what we are buying, now - apart from months of argument, and activist investor disruption. Do we need an investment in that?

Arb.

[idpickering]

I mentioned further up this thread that I’m going to wait. Admiral Group get the nod for me for atop up tomorrow.

Ian.

[moorfield]

Add, stick, twist?

Sticking, and plenty of higher yielding options elsewhere eligible for top ups: UU., GSK, LGEN, RDSB, HSBA, VOD, IMB; and two low yielders that may become eligible for disposal soon: WTB, JMAT.

So from an overall portfolio perspective, am happy to tune out of any chatter for the forseeable.

Edit: the final dividend btw, 37.3p, is already announced due 9 July.

[kempiejon]

Add, stick, twist?

Sticking, and plenty of higher yielding options elsewhere eligible for top ups: UU., GSK, LGEN, RDSB, HSBA, VOD, IMB; and two low yielders that may become eligible for disposal soon: WTB, JMAT.

So from an overall portfolio perspective, am happy to tune out of any chatter for the forseeable.

Edit: the final dividend btw, 37.3p, is already announced due 9 July.

I'd not be considering selling JMAT, 20 years of inflation beating dividend increases and a couple of dollops of special cash too. I've had them for 10 years but rarely a HYP candidate prior or since