Last year’s shares price movements resemble a curate’s egg.
Twice as many publicly listed marcoms companies will be celebrating share price rises in 2010 than are mourning declines, but the overall trend still fell behind the 11.6% improvement in the FTSE All-Share Index.
So, as the famous Punch cartoon caption put it when the bishop told his curate: “I’m afraid you’ve got a bad egg, Mr Jones”, the reply came back “Oh, no, my Lord, I assure you that parts of it are excellent!”
Sadly, our MSFI Index for the sector (up 5.3% in the year) confirms what in the cartoon the bishop knew to be true: the sector as a whole did badly.
The main reason was the scale of decline in share prices of six companies – Ten Alps (down 77%), Adventis Group (down 64%), Media Square (down 61%), The Mission Marketing Group (down 55%) and Digital Marketing Group (down 51%) – see chart below. If those poor performances had been a little less poor, the index would have looked much better. But, as has been mentioned here before, the sector is adversely influenced by the relatively small size of most public companies in it and the stock market’s nervousness about the perceived inherent volatility of marketing agencies. This is only a brief excerpt from the article. To read it in full please follow the instructions below: If this article is shown as FREE on the Home Page...
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