IPG. The P is for Prescience.
Sorry, but I can’t help but feel a little smug about my investment abilities, especially when it comes to Interpublic (”IPG Sees Stars,” 03/22/06).
IPG’s been all over the news. First, you’ve got FCB’s Steve Blamer tossing out ideas Chiat/Day used to win harness racing track accounts in the 1970s. Then there’s Lowe’s Stephen Gatfield telling a crowd, “Most of you have already asked me this question: ‘Why don’t you put a bullet in Lowe already?’” And, oops, did I mention that IPG’s CFO, Nick Cyprus, is being terminated from his position but is being given a $2.5 million severance package?
(By the way, George Parker over at AdHurl got this one wrong. Cyprus isn’t being terminated “for cause” (with or without the exclamation point), but rather, “for reasons other than `for Cause.’” Had he been terminated for cause, Cyprus would have lost out on his golden parachute.)
All of this took place at IPG’s Investor Day dog and pony show where IPG Chairman Michael Roth tried to spin his way to a better future by offering up a plethora of buzz words but little in the way of red meat financial data. If there’s one thing Wall Street hates, it’s all garnish and no steak.
By all accounts, the investors weren’t impressed. AdAge said it best:
Interpublic stock closed today at $10.05, down 39 cents or 3.7% on moderate volume. The stock slumped at the opening bell and continued to drift lower as today’s presentations continued, closing at its lowest price of the day. (AdAge)
The good news? The falling price will make IPG even more of a Morningstar value. Right up until they lower the valuation of the company, that is.
2 commentsEmail Article Tuesday, March 28th, 2006 at 08:33pm Mack Simpson
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