Technical Research on Focus Media and Interpublic Group: Advertising Giants Move Towards Mobile Ads

 Technical Research on Focus Media and Interpublic Group: Advertising Giants
                           Move Towards Mobile Ads

  PR Newswire

  LONDON, January 25, 2013

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 22 ^nd . 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.


1.Focus Media Holding Ltd. Technical Analysis [ ]

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