Share prices of three marcoms companies have tripled since last year’s low

Further evidence – if ever it was required – that well regarded marketing services companies’ share prices run ahead of (and over-react to) underlying economic conditions is provided by the movement in their share prices since the stock market’s low point in March last year.

Anticipating the recovery ahead of any strong commercial evidence, the sector’s MSFI Index has risen by 56% while the FTSE All-Share Index has risen by only 48%.  But prices of many individual marcoms companies’ shares have more than doubled in that period, while those of three companies – Motivcom, Creston and Chime Communications – have tripled in value.  Even the mammoth WPP Group has outperformed the FTSE All-Share Index.

Inevitably there have been some laggards, notably The Mission Marketing Group, Digital Marketing Group, Hasgrove and Ten Alps.  Their shares are now priced at less than they were at the March 2009 market low.  Others whose shares have significantly underperformed the FTSE All-Share Index include Cello Group, Adventis Group, Progressive Digital Media and Media Square.

© Fintellect Ltd