Wpp Share Discussion Threads

[blondviking] 29/10/2018 09:11

Looks like freefall! Any guesses as to the bottom?

[pogue] 27/10/2018 12:02

careful
I did the same as you but I sold yesterday at a loss. I see a recession coming due to the influence on world trade by Trump hence bad times for the advertising industry which does not fair well in downturns as company budgets on everything are cut especially advertising. I maybe wrong but its going to take something spectacular for this one to recover to my purchase price. Fortunately only a low level punt by me so the losses are not painful.

[careful] 27/10/2018 09:01

You just have to hope that this random collection of businesses knows what it is doing and is adapting to change in the smartest way possible.

'Never buy share that you do not understand, keep it simple' said Buffett.
Well I do not have a clue about this business that Sorrell created or what its prospects are going forward.

I bought after the share price fall during the Sorrell incident but I am now well down. Not a chartist, but the trend is strongly down, with never an encouraging comment from any quarter.

Holding and hoping, advertising is a huge industry.

[declan2] 26/10/2018 15:34

Added a few

[grahamite2] 26/10/2018 08:05

I don't go for gloating at the misfortunes of others. But TradeJunkie could easily be right. Hard times are exactly when a business should be spending more on advertising, but in practice they usually do the opposite.

[tradejunkie2] 25/10/2018 13:45

Lovely day today.

One stock for the recession portfolio watch list waiting for much cheaper prices.

[careful] 25/10/2018 12:45

a pity that they could not get the debts to walk out of the building.

[grahamite2] 25/10/2018 11:06

careful 25 Oct '18 - 09:19 - 552 of 558

Strip out intangibles and net assets are below zero.

The Chairman of J Walter Thompson, years before it was taken over by WPP, said the trouble with his business was that the assets walked out of the building every day at 5 o'clock.

[porsche1945] 25/10/2018 10:24

Another poor quality ftse 100 company with useless management, Sorrel should have gone years ago. Ftse becoming uninvestable, falling over like skittles, as T Smith says, its just full of rubbish, high dividends but declining business models and capital destruction. As a holder of these (feel sick) just pray for a takeover bid, someone comes in breaks it up and sells it off and can at least clear cost, it has a decent breakup value, for now, but the way it is going that may not last.

[essentialinvestor] 25/10/2018 09:21

This is more than just MS leaving,
cracks were beginning to show well in advance.
Mentioned the net debt here previously.

[careful] 25/10/2018 09:18

Having read the statement more closely I feel more encouraged about the future.
Clients won, lost and retained.
This is a huge industry and WPP must adapt to the changes.

'not in structural decline, but structural change..'
All to play for, probably a good entry point.

The shorters are now doubt out in force today, another coordinated pre arranged attack.
A feature of modern market.

Historic PE of 6 and yield 7% may be meaningless but it is a measure of the share decline.
Down for a peak of £19.

[maxk] 25/10/2018 08:33

A coup, me too, PC manufactured moral outrage = 50% drop in shareprice.

Was it worth it to the folks behind it?

[ny boy] 25/10/2018 08:27

Sir Martin's decision to start a new venture has echoes of his reverse takeover of Wire and Plastics Products in 1985.
The maker of wire shopping baskets was turned into WPP, and over 30 years became the world's biggest advertising company with revenues of over £15bn.

It’s why I invested in Sorrell’s new venture S4 Capital (SFOR) adding more at current levels too but not these, longtime chart support from 7yrs ago 800p but for now these have dropped out of the falling trend channel

Added (ABDP) this morning Dyor as usual

[montyhedge] 25/10/2018 08:21

Fancy letting the No.1 man go with all his knowledge and contacts.To top it all no start up clause for Sorrell. Incredible.

[careful] 25/10/2018 08:19

Seems to have lots of debt.
Is this company safe?

Strip out intangibles and net assets are below zero.
I suppose intangibles are mostly the difference between the price Sorrell paid for this collection of agencies he bought and their asset value.

[essentialinvestor] 25/10/2018 08:03

Careful, mentioned to you this looked a value trap.
Best hope may be someone else sees value.

Some of the big consumer companies are taking some advertising back in house,
huge speed of change in this market.

[careful] 25/10/2018 07:59

WPP were sliding before Sorrel stepped down.
but it was a big mistake to get rid of him because of some prudish political correctness
issue.
He was too important and had the connections.
WPP shot themselves in the foot.

I will hold, the damage has been done.
A sprawling giant like WPP can never be a one man band.

[blueteam] 25/10/2018 07:58

buying opportunity, got some early doors.

[maxk] 25/10/2018 07:48

Timelines..

[grahamite2] 25/10/2018 07:24

I agree, careful - they are not that bad, and most of the issues had already been flagged in earlier announcements. This might even be the buying opportunity I've been waiting for.

Grim for those who've been holding a while.

[careful] 25/10/2018 07:15

nothing to say.
I didn't think the results looked that bad.
Group finance director leaving never a good sign.
New CEO kitchen sinking is another factor.

[grahamite2] 24/10/2018 22:13

Third quarter trading statement tomorrow and there hasn't been a single post for days. How very odd.

[careful] 19/10/2018 08:21

I wish I had not bought these after the Sorrell incident.