From Cazenova just now .... DYOR .... but quick :)

WPP - upgrade to OUTPERFORM - interims due 26 Aug which we expect to be strong, reflecting gd Q2 fig's already reported by peers. We see potential for EPS upgrades of up to 5%-10% N/T (combination of top line, margin & US$). L/T we expect EPS growth of up to 17%-18% pa before maturing at 11%-12% pa. Key risks are (1) further M&A (2) prem valuation (17.1x 06 EPS before any upgrade), representing a 31% prem to UK mkt & 33% to UK media sector. Despite this we still believe it has room to outperform. Our DCF valuation gives 760p, 28% upside from here.

clunk!
weak figures and sp has plummeted ...... may still be worth a short

after this morning's horrid figures and prognostication for 2009, the 20p rise can surely only be attributed to bear closing as they take profits ..... if you read the entry on NewsWatch here, you'll undersatnd why i maintain this is a good shorting opportunity, even if sp is slowly slipping as i write

Gausie
as you know, i am really just a total dickhead, but the way i read it, once sp had firstly broken strongly through the old low of about 470 and then failed to hold the recovery from 430 and again 320, it looks like one-way traffic for the moment, especially if 320 breaks down too.

WPP has already admitted that 2009 will be tough in the extreme, and though i may well be wrong, i don't think they are particularly strong in digital advertising which is where all the new money is going.

further, digital advertising is still holding up well whjile traditional tanks

Cynic

Thanks for the heads up - but this one isn't for me. Good luck.

G

so far so good and modestly in the money ..... my own view is that the advertising sector is one-way south for the next several months at least .... added to my short position earlier today

unless i am much mistaken, a significant proportion of WPP's revenue comes from the automotive industry ...... the news surrounding GM, Toyota, Jaguar etc etc hardly augurs well!

seems the chart for this stock has collapsed in a heap! ...... never mind; have checked eslewhere and 305 looks like the serious support level .... if that goes, then "goodnight vienna"!

Probably doesn't help that CEO was on Newnight yesterday saying that next year was going to be a disaster!

he said 2009 was going to be tough just a few weeks but did not think it would be the disaster predicted .... as you say, his stance has shifted a bit ..... WPP has been an "iffy" stock for some time, as traditional advertising is dying and WPP in particular, gets a lot of its reevenue from the car industry

have just added to my short position here ..... i think WPP has a long way to fall over the coming months

and so it is beginning to prove .... shame i did not get the timing of my initial foray correct, but still

apparently Sorrell has admitted "tough tiome ahead before recovery" ..... is this a hint that their next figures will fall short of expectations? ..... i reckon so, have been saying so for ages, and damn well hope so as i am short!

cynic
talk it up short time, to try to hold price up, when tat dont work own up.
regards
jkd

i admit my bias, but all sorts of things look to me to stack up against WPP ..... advertising is one of the first casualties when strings tighten ..... a huge slice of WPP's biz comes from US car makers, and we all know what is going on there! .... WPP is a pretty traditional "above line" agency, even though that is changing, but it is "above line" that is getting hammered ....

what is the positive news for WPP?

cynic
sure you admit your bias, do you own up? then is your name Sorrell?
please read my post once again, sorry if it is ambigious. i agree with you.
regards
jkd

i did read it twice before posting and also came to the conclusion you were not attacking me, though it would not have upset me had you been

cynic
ta i would hope i would not attack you or anyone else for that matter, anyway nice to know you are so open minded about such things
regards
jkd

The chart would suggest 320p as being good support for the sp. Anything below that is in unknown territory. Presumably the shorters will close just before that?

sure cocked this one up big time .... have just bittenm the bullet .... should have sold out of this and kept my WOS short running ... conspiracy all round!

Not one I am following atm, but just for info (cynic) :
-------------------------------------------------------Old Tgt New Tgt
24-Aug-09 WPP Group WPP Royal Bank of Scotland Buy 475.00p 550.00p Reiteration
24-Aug-09 WPP Group WPP Deutsche Buy------------- 465.00p 610.00p Upgrade