Share price recovery exposes the weak

A year ago the stock market was at its lowest point for many years.   Not surprisingly, shares in marketing services companies had fallen even more sharply than most others, as investors worried about the sector’s particular vulnerabilities.  Recessions are always expected to hit marketing agencies more severely than most other type of business and the relatively small size of most marketing companies is perceived as an additional investment risk.

Today the picture is very different.  Just as the publicly listed marketing companies suffered worse than most other sectors during the downward slide, so they have subsequently rebounded more dramatically.   We first noted signs of this recovery in January (see Share prices bring New Year cheer), and the situation has continued to improve since then.

The price of shares in all but seven of the companies monitored here improved by more than the 53% increase in the FTSE All-Share Index during the year.  Among the best rises were shares in Motivcom, Chime Communications and Creston, all of which have seen their prices triple.  By contrast the seven poorest performers were Adventis Group, Cello Group, Digital Marketing Group, Hasgrove, The Mission Marketing Group, Progressive Digital Media and Ten Alps.

© Fintellect Ltd