Ooh! Media and APN Outdoor – Buy, Hold or Sell?

Just over a year you published an article in the Switzer report where Charlie Aitken recommended outdoor advertising stocks that he felt had a lot of potential: Ooh! Media and APN Outdoor. Not long after this article was published, the two companies announced a merger, and you published another article highly recommending these shares. In the meantime, the prices of both had risen. The merger was subsequently not approved by the ACCC and the share prices fell. Since then the shares of both stocks have not moved much, although Ooh! Media is now just above my buy-in price, but APN is nowhere near it. Also, since then you The Switzer Report has not mentioned either company in any of your articles.

My question is: what is your view on these shares now? Would you be a buyer/holder or seller now?

 

A: Thanks for the question.

Charlie will be attending our webinar on Friday – so we will ask him to comment on the stocks.

Obviously, the failed merger knocked the stuffing out of APN Outdoor (APO), and incurred considerable cost. It has also suffered from the loss of the Yarra Trams contract.

As for the analysts, they see more upside for APO. According to FN Arena, current consensus target prices are:

APO: $5.20 (last traded price $4.58)

OML: $4.94 (last traded price also $4.58).

Broker sentiment on both stocks (and the industry) is positive


Read Answer