Got a credit card? use our Credit Card & Finance Calculators
Thanks to Wasron,jfgw,Rhyd6,eyeball08,Wondergirly, for Donating to support the site
WPP fall
Forum rules
Tight HYP discussions only please - OT please discuss in strategies
Tight HYP discussions only please - OT please discuss in strategies
-
- The full Lemon
- Posts: 10439
- Joined: November 4th, 2016, 9:33 am
- Has thanked: 3644 times
- Been thanked: 5272 times
WPP fall
Looking around for my next top-up, I notice a rather heavy fall in WPP yesterday.
Is there any news that could account for this 8% drop?
Arb.
Is there any news that could account for this 8% drop?
Arb.
-
- The full Lemon
- Posts: 11383
- Joined: November 4th, 2016, 5:04 pm
- Has thanked: 2476 times
- Been thanked: 5801 times
Re: WPP fall
Arborbridge wrote:Looking around for my next top-up, I notice a rather heavy fall in WPP yesterday.
Is there any news that could account for this 8% drop?
Arb.
Can’t remember the name of the share, but a company in the USA put out a bad report about loss of advertising. That share went down a lot more than WPP.
Ian.
-
- Lemon Quarter
- Posts: 1343
- Joined: November 4th, 2016, 9:55 am
- Has thanked: 1339 times
- Been thanked: 607 times
Re: WPP fall
Hi Arb
I am aware that WPP's rival, Publicis, published lower than expected 4th quarter earnings and that seems to have had an effect. Here's one of the news stories http://prolificlondon.co.uk/news/market ... nings-fall
Cheers, OLTB.
I am aware that WPP's rival, Publicis, published lower than expected 4th quarter earnings and that seems to have had an effect. Here's one of the news stories http://prolificlondon.co.uk/news/market ... nings-fall
Cheers, OLTB.
-
- Lemon Quarter
- Posts: 3552
- Joined: November 7th, 2016, 1:56 pm
- Has thanked: 1586 times
- Been thanked: 1416 times
Re: WPP fall
Arborbridge wrote:Looking around for my next top-up, I notice a rise in WPP yield yesterday.
Is there any news that could account for this 0.7% point increase ?
Arb.
Fixed that for you
Market concerns about the "old media" sector following Publicis disappointing results yesterday. It's certainly an unloved share currently, an attractive entry point perhaps.
-
- The full Lemon
- Posts: 11383
- Joined: November 4th, 2016, 5:04 pm
- Has thanked: 2476 times
- Been thanked: 5801 times
Re: WPP fall
I hold WPP, and sometimes regret buying into it. A bit of diworsification on my part.
Ian.
Ian.
-
- 2 Lemon pips
- Posts: 187
- Joined: November 7th, 2016, 10:13 am
- Has thanked: 140 times
- Been thanked: 28 times
Re: WPP fall
I think WPP has moved even further into the area for potential HYP buying because of this:
https://seekingalpha.com/news/3430307-ad-giants-slip-publicis-revenue-disappointment?dr=1#email_link
At at p/e of 5.6 and a yield of 7.5% this looks amazing value. However, I can’t yet bring myself to invest. The Net Tangible Asset Value per share is -434p (share price of 801p). In advertising I can’t understand why all the key people don’t just move and start up another WPP without debt, i.e. what are the barriers to entry?
https://seekingalpha.com/news/3430307-ad-giants-slip-publicis-revenue-disappointment?dr=1#email_link
Ad giants slip after Publicis revenue disappointment
Feb. 6, 2019 1:28 PM ET|About: WPP Plc (WPP)|By: Jason Aycock, SA News Editor
Ad-industry giants are moving lower today after Publicis Groupe (PUBGY -7.1%) fell short on its organic revenue, which declined amid marketing budget cuts from its consumer-goods clients.
WPP is down 3.5%; Interpublic Group (NYSE:IPG) is 5.8% lower and Omnicom Group (NYSE:OMC) is down 4.9% today.
Along with a 0.3% decline in organic revenues, well short of expectations for 2.5% growth, Publicis forecasts a "bumpy ride" for Q1 due to the client attrition.
Next up to report among the Big Four is likely IPG on Feb. 13.
At at p/e of 5.6 and a yield of 7.5% this looks amazing value. However, I can’t yet bring myself to invest. The Net Tangible Asset Value per share is -434p (share price of 801p). In advertising I can’t understand why all the key people don’t just move and start up another WPP without debt, i.e. what are the barriers to entry?
-
- Lemon Quarter
- Posts: 2107
- Joined: November 5th, 2016, 9:37 am
- Has thanked: 469 times
- Been thanked: 1466 times
Re: WPP fall
blobby wrote:At at p/e of 5.6 and a yield of 7.5% this looks amazing value. However, I can’t yet bring myself to invest. The Net Tangible Asset Value per share is -434p (share price of 801p). In advertising I can’t understand why all the key people don’t just move and start up another WPP without debt, i.e. what are the barriers to entry?
You pretty sound bullish but have not mentioned the Net Debt increased to just short of £5bn at the last update which is 3.7x forecast net profit. If net profit falls much further the debt will start to look very burdensome, which it is already frankly. And surely the market is saying the EPS value on which you are basing your P/E value is wrong. My numbers tell me the P/E is around 8x on current EPS forecasts, which could also be lowered of course.
As for NTAV, what are these assets? If the brown stuff and the fan were in close proximity would they really be worth 434p?
Si - Chief advocate of the devil
-
- The full Lemon
- Posts: 10439
- Joined: November 4th, 2016, 9:33 am
- Has thanked: 3644 times
- Been thanked: 5272 times
Re: WPP fall
Thanks, folks. Those results explain everything; a shame really as it looked as though WPP was having some respite from bad news - now it catches a cold from a "read across".
Arb.
Arb.
-
- Lemon Half
- Posts: 8427
- Joined: January 7th, 2017, 9:56 am
- Has thanked: 1549 times
- Been thanked: 3445 times
Re: WPP fall
OLTB wrote:Hi Arb
I am aware that WPP's rival, Publicis, published lower than expected 4th quarter earnings and that seems to have had an effect. Here's one of the news stories http://prolificlondon.co.uk/news/market ... nings-fall
Cheers, OLTB.
Yes, it was ze French that done it!
-
- 2 Lemon pips
- Posts: 187
- Joined: November 7th, 2016, 10:13 am
- Has thanked: 140 times
- Been thanked: 28 times
Re: WPP fall
simoan wrote:blobby wrote:At at p/e of 5.6 and a yield of 7.5% this looks amazing value. However, I can’t yet bring myself to invest. The Net Tangible Asset Value per share is -434p (share price of 801p). In advertising I can’t understand why all the key people don’t just move and start up another WPP without debt, i.e. what are the barriers to entry?
You pretty sound bullish but have not mentioned the Net Debt increased to just short of £5bn at the last update which is 3.7x forecast net profit. If net profit falls much further the debt will start to look very burdensome, which it is already frankly. And surely the market is saying the EPS value on which you are basing your P/E value is wrong. My numbers tell me the P/E is around 8x on current EPS forecasts, which could also be lowered of course.
As for NTAV, what are these assets? If the brown stuff and the fan were in close proximity would they really be worth 434p?
Si - Chief advocate of the devil
Hi Simoan, I think you may have mis-read my post. I quoted NTAV as -434p (minus 434p). I'd describe myself as bearish on WPP (for what that is worth).
-
- Lemon Half
- Posts: 8427
- Joined: January 7th, 2017, 9:56 am
- Has thanked: 1549 times
- Been thanked: 3445 times
Re: WPP fall
Some figures on WPP's debt.. this from Simply Wall Street ( which it claims it took the data from WPP's company filings). Is debt reducing?
Code: Select all
Date (Data in GBP Millions) | Total Equity | Total Debt | Cash & Short Term Investments
2018-06-30 | 9,993.50 | 6,852.90 | 2,221.00
2018-03-31 | 9,993.50 | 6,852.90 | 2,221.00
2017-12-31 | 9,962.00 | 6,874.50 | 2,391.40
2017-09-30 | 9,962.00 | 6,874.50 | 2,391.40
2017-06-30 | 9,856.60 | 7,525.50 | 2,856.00
2017-03-31 | 9,856.60 | 7,525.50 | 2,856.00
2016-12-31 | 9,767.60 | 6,567.40 | 2,436.90
2016-09-30 | 9,767.60 | 6,567.40 | 2,436.90
2016-06-30 | 8,978.20 | 6,396.30 | 2,147.40
2016-03-31 | 8,978.20 | 6,396.30 | 2,147.40
2015-12-31 | 8,015.80 | 5,593.20 | 2,382.40
2015-09-30 | 8,015.80 | 5,593.20 | 2,382.40
Return to “HYP Practical (See Group Guidelines)”
Who is online
Users browsing this forum: No registered users and 50 guests