LONDON, January 25, 2013 /PRNewswire/ --
Like any other sector, Advertising segment is also greatly affected by changing technological trends. The main shift in the sector comes from the companies moving into digital advertising medium. StockCall analysts have completed technical reports on Interpublic Group of Companies (NYSE: IPG) and Focus Media Holding Limited (NYSE: FMCN). Register today to access these free reports at
Even major players like Interpublic Group of Companies, parent group of McCann Worldgroup, are forming new alliances to tap the growing new trend in advertising. At the very same time, a major Chinese display advertizing company Focus Media Holding agreed to be bought under a leveraged buyout deal. The deal not only created value for the investors, but may also help the company in avoiding future run-ins with the SEC. Sign up now for the technical analysis on Interpublic Group of Companies at
Focus Media Going Private
Focus Media Holding Ltd. [Free Analysis Report on FMCN] [(1)] is mainly active in China and is one of the most prominent display advertizing agencies in China. While the stock offered healthy returns in 2012, it is currently facing legal issues. The company reported that it is likely to be probed by the Securities and Exchange Commission for its alleged violation of securities law. Apart from the legal hassles, the stock is also expected to be negatively impacted by the slowdown in Chinese economy, as it derives a major portion of its revenue from China operations.
Focus Media had announced late last year that it has agreed to be bought by a consortium of investors. The consortium is led by Carlyle Group. At $3.7 billion, the deal was the biggest leveraged buyout in China and priced the company equity at $27.50 apiece. The company would go private after the completion of the deal.
Interpublic Group Moves to Mobile Advertising
Interpublic Group of Companies has a well diversified portfolio with agencies like Lowe and McCann Worldgroup under its belt. While the company is well established in its niche sector and is currently the third biggest advertizing agency globally, it is also diversifying into fast emerging advertising mediums such as mobile advertising. Interpublic Group is looking to consolidate its position by entering into strategic alliances. Its latest foray includes its deal with Kiip. Kiip provides services related to mobile rewards network. The alliance will help Interpublic Group in gaining foothold in mobile advertising segment and is likely to have positive impact on its bottom-line in future.
Interpublic Group is scheduled to report its fourth quarter and full year financial numbers on February 22nd. The stock is currently on the upward swing and created a new 52-week high. Interpublic Group stock grew a little over 15 percent in 2012 and also provides good dividend yield of 1.98. The stock is expected to perform well in near future as institutional investors are picking up stake in the company. FPA Capital added 2.532 million shares of the company to its portfolio in the last quarter.
Interpublic Group had reported weak results for its third quarter but its fourth quarter and full year results are expected to be better. Analysts expect the quarterly revenue to be at $2.12 billion while its full year revenue is likely to be reported at $7.06 billion. The company also recently augmented its share repurchase program to $400 million. Earlier, it planned to buy back $300 million worth of its stock. The increase in buyback plan is a sign of confidence on the part of management.
- Focus Media Holding Ltd. Technical Analysis [ http://www.StockCall.com/TheInterpublicGroupofCompaniesInc012513.pdf ]
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