Stocks & Investing
Stocks and InvestingStocks and Investing 
Wed, August 24, 2011
LOCM, OMC, IPG, CMM, ICLK, AMCN, Advertising - Marketing Services Stocks Undervalued
August 24, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Advertising - Marketing Services sector and these stocks are the most undervalued as of today. LOCAL.COM CORP (NASDAQ:LOCM), OMNICOM GROUP (NYSE:OMC), INTERPUBLIC GROUP OF COS INC (NYSE:IPG), CHINA MASS MEDIA CORP-ADR (NYSE:CMM), INTERCLICK INC (OTCBB:ICLK), AIRMEDIA GROUP INC-ADR (NASDAQ:AMCN) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry
LOCM LOCAL.COM CORP 2.4 5.44 55.90% Undervalued Advertising - Marketing Services
OMC OMNICOM GROUP 38.55 55.01 29.90% Undervalued Advertising - Marketing Services
IPG INTERPUBLIC GROUP OF COS INC 8.29 12.05 31.20% Undervalued Advertising - Marketing Services
CMM CHINA MASS MEDIA CORP-ADR 1.09 2.49 56.20% Undervalued Advertising - Marketing Services
ICLK INTERCLICK INC 5.53 7.48 26.10% Undervalued Advertising - Marketing Services
AMCN AIRMEDIA GROUP INC-ADR 2.3 6.47 64.50% Undervalued Advertising - Marketing Services
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
LOCAL.COM CORP (NASDAQ:LOCM) - Local.com Corporation provides local search services on the Internet. It operates Local.com, a local business directory site that provides information on approximately 14 million local businesses. The company also provides local search services on its local syndication network of regional media sites for which it offers business directories and associated services, as well as provides sales and advertiser services. The company offers proprietary search results using its patented technologies, as well as monetizes those search results by placing sponsored listings on the search results page. Its sponsored listings comprise subscription, cost-per-click, cost-per-call, and display ads from its own direct advertisers and third-party advertiser sources. The company was formerly known as Interchange Corporation and changed its name to Local.com Corporation in November 2006. Local.com Corporation was founded in 1999 and is based in Irvine, California.
OMNICOM GROUP (NYSE:OMC) - Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. It offers services in traditional media advertising, customer relationship management, public relations, and specialty communications groups. The companys services include advertising, brand consultancy, corporate social responsibility consulting, crisis communications, custom publishing, database management, digital and interactive marketing, direct marketing, directory advertising, entertainment marketing, environmental design, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts, healthcare communications, and instore design. Omnicom Group also offers investor relations, marketing research, media planning and buying, mobile marketing services, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, public relations, recruitment communications, reputation consulting, retail marketing, search engine marketing, and sports and event marketing services. It offers its services in the Americas, Europe, the Middle East, Africa, Asia, and Australia. The company was founded in 1944 and is based in New York, New York.
INTERPUBLIC GROUP OF COS INC (NYSE:IPG) - The Interpublic Group of Companies, Inc., through its subsidiaries, provides advertising and marketing services worldwide. It offers various services across marketing disciplines, including consumer advertising, digital marketing, media buying and planning, public relations, events marketing, search engine marketing, e-commerce solutions, and specialized communications disciplines. The company also provides various diversified services, such as meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. Its global brands include McCann, Draftfcb, and Lowe; and full-service agency brands comprise Campbell-Ewald, Campbell Mithun, Hill Holliday, The Martin Agency, Mullen, and Gotham. The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961. The Interpublic Group of Companies, Inc. was founded in 1902 and is based in New York, New York.
CHINA MASS MEDIA CORP-ADR (NYSE:CMM) - China Mass Media Corp. operates as an independent television advertising company in the Peoples Republic of China. It offers a range of integrated television advertising services, including advertising agency services, special events services to China Central Television (CCTV), and production and sponsorship services. Its advertising agency services comprise purchase and sale of advertising time slots on national television channels to its customers to allow them to reach audience across China. The companys special events services consist of sales and marketing services to CCTV for special sport events. Its production and sponsorship services include designing, producing, and packaging television advertisements, as well as producing public service announcements and commercial advertisements. The company serves advertising agencies and corporations, as well as other entities seeking to advertise their own products or services. It was formerly known as China Mass Media International Advertising Corp. and changed its name to China Mass Media Corp. in April 2009. China Mass Media Corp. was founded in 2003 and is headquartered in Beijing, the Peoples Republic of China.
INTERCLICK INC (OTCBB:ICLK) - interCLICK, Inc., an audience intelligence and targeting company, engages in developing and executing data-driven campaign strategies for digital agencies and marketers. The company offers interCLICK, an online display advertising network with proprietary data-enrichment technology platform. Its interCLICK empowers its clients to reach desirable audiences in brand-safe environments. The company was formerly known as Customer Acquisition Network Holdings, Inc. and changed its name to interCLICK, Inc. in June 2008. interCLICK, Inc. is headquartered in New York, New York, with offices in Chicago, Los Angeles, San Francisco, Dallas, and Miami.
AIRMEDIA GROUP INC-ADR (NASDAQ:AMCN) - AirMedia Group Inc., through its subsidiaries, operates digital media network in China for air travel advertising. It operates digital frames and digital TV screens that display advertisements in airports and airplanes. The company also displays non-advertising content, such as weather, sports, and comedy clips; and documentaries and hidden camera type reality shows from other third-party content providers in its digital TV screen programs. In addition, it displays advertisements on interior or exterior walls of gate bridges, including billboard and painted advertisements, as well as operates light boxes and billboards at airports. Further, the company holds concession rights to operate various traditional advertising media, including billboards, light boxes, and other media platforms out of the air travel sector. As of April 30, 2010, it operated digital frames in 33 airports in China; digital TV screens in 37 airports; 525 light boxes and billboards in 3 airports; and 114 billboard advertisements and 46 painted advertisements on the gate bridges located in 7 airports. AirMedia Group Inc. has a strategic alliance with Ife Services Ltd. The company was founded in 2005 and is headquartered in Beijing, China.
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