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WPP pays a bigger Dividend though.
WPP closed up 1.6% SFOR closed up 6.5%
I think all the key brands want to keep their customers through any downturn and will advertise to keep their brand name out there...regardless of whether there is a dip in sales revenue....otherwise, you only end up spending double after the recession in a fight to try and get them back
You would be mad to let your key brand go stale just because of a 12 month downturn......
" left analysts scratching their heads"
poor things left to work things out for themselves instead of hoping to be spoon fed, as normal
" Would this effect WPP? "
it will take an age to get a court result and then any possible appeal.....it would just make the market more competitive and re-distribute the market takers for distributing advertising , if anything.... little effect on WPP themselves
Capital will out perform this my a magnitude. Definitely worth having some exposure over there too in my view !
Bloomberg have an artivle headed are saying "DOJ Is Preparing to Sue Google Over Ad Market as Soon as September."
"The US Justice Department is preparing to sue Google as soon as next month, according to people familiar with the matter, capping years of work to build a case that the Alphabet Inc. unit illegally dominates the digital advertising market."
https://www.bloomberg.com/news/articles/2022-08-09/doj-poised-to-sue-google-over-ad-market-as-soon-as-september
Would this effect WPP?
Well I'm joining Barny in his flabbergasted flabbergastation.
Was always going to follow S4C with its recent downward movement. Inflationary staff and business costs I would suggest.
“WPP posted positive results for the first half of 2022, but a lack of formal guidance for the year ahead in the face of economic uncertainty left analysts scratching their heads and led to an 8% drop in its share price.” Reported on the cube online. Not sure what more they could have done today let’s hope a better few months ahead which is not looking likely . If this dips below 800 next week after that update I will be flabbergasted . But hey ho I got today totally wrong
Good price for a buy IMO. 9% drop well overdone. Results were good but nervousness in markets about looming recession but at this price well worth the risk.
Goldman Sachs raises WPP price target to 900 (880) pence - 'neutral' . Price will bounce numbers were good
Siddeek
they paid down debt by £220.6m in the period....what are you talking about when you say "borrowed more"?
Borrow more money to make more money. That's what WPP has done. What do we expect from a company that borrows more? Isn't it doing the right thing?
Another dross terminal future ftse 100 company, this had been in decline since 2018, I unloaded for a small loss at1150 and stuck the money into apple thank god, have made another 10pc being in usd rather than brexit wrecked sterling. Amazed anyone would buy this for the crappy dividend, what’s the point with this dividend rubbish? Buy for 5 pc to lose half your capital.
the net debt increase though has come from spending the held cash on share purchases, rather than increasing borrowing
They had £3.54 billion of cash and have spent that, reducing it down to £1.489 billion at period end
Adjusted net debt at 30 June 2022 £3.1 billion, up £1.6 billion year-on-year after £1.1 billion of share buybacks since June 2021
the market had already bid up an expected good result so when it arrived the market sold and took profit .....ex div day isnt until 13th October so no need to buy for that in early August....
China looking weak
Sellers probably leave now until September now and await further macro news, I expect
Good company ...
Market already knew about the net debt increase expectation
Net debt is increasing rapidly
Maybe someone can explain it to me as well Barnyrubble
Not sure what I missed but ups guidance boosts divi 20% and share price drops like a stone.
Recession fears still out there worrying the market..... US inflation figure for June out Wednesday and that may well influence the next FED rate decision for the end of July
volatile and somewhat uncertain
I dipped my toe in this morning.....div payment tomorrow should help it tick up from the lows.... a good company, 14% operating margin ....H1 Results due in August
Wpp has been a company in decline for several years, you’d be better buying Google if you want advertising exposure, I sold these at 11 quid thank god, took a small loss and moved the money into L&G, Also Goog priced in usd so more protection against sterling which seems pretty doomed since brexit and now UK’s economic meltdown/political basket case stuff.
fatprofits,
hi there....yes...need to tread very careful at the moment..agreed ..I am too..definitely not letting FOMO affect me on rises in a bear market ...