Omnicom Group, Inc. operates advertising agencies which plan, create, produce and place advertising in variousmedia. The Company also offers marketing consultation, market research, sales promotion programs, public relations & other services. For the FY ended 12/00, revenues rose 20% to $6.15B. Net income rose 37% to $498.8M. Results reflect increased worldwide revenues due to acquisitions and a $110M gain on the sale of Company%s ownership in Razorfish.

April 12, 2001

Omnicom, which is a major operator of advertising agencies as well as a provider of a slew of services that include market research, sales promotion and public relations, enjoyed a solid rally last week. OMC is expected to post good profits of $0.51 a share on Tuesday, April 24th before the market opens. If OMC meets these estimates, it will have increased its profits by 13% over the same quarter a year ago. Some of last week's rally can be attributed to the fact that Lehman Brothers recently initiated coverage of OMC with a Buy rating. OMC is also a strong split candidate. The company's last split was over three-and-a-half years ago and was announced when the stock was trading at a price $16.00 below Thursday's close. Thursday's rally saw OMC close only six cents below its 50-DMA of $86.56. A follow through above this important resistance on Monday may provide a good entry signal. However, one should be cautious if OMC gaps up two or more points on the open. This scenario would likely result in a pullback that may offer traders a better entry price later in the session. A sustained rally should eventually find resistance at February's high of $95.44. The MACD did issue a buy signal last week. The RSI has plenty of upside room before this indicator would signal an overbought condition. Money Flow has been outstanding and is indicating the likelihood for continued gains.

Picked on April 12th @ $86.50
Change since picked +0.00
Stop Loss @ $80.00

April 19, 2001

Omnicom has proven to be enticing to traders because the rate cut should stabilize the economy and ensure a "soft" landing. Omnicom, a major player in the advertising industry, should benefit from a stabilized economy because their clients will be more willing to expand their advertising budgets in an attempt to capture more business as the economy improves. Analysts expect Omnicom to report solid earnings of $0.51 a share for the first quarter on April 24th, despite general weakness in the overall economy last quarter. Combine a solid first quarter with the prospects of an improving economy and one can see why Omnicom has been an excellent performer this week. That said, it looks like the stock has found some resistance at $92.50. A move above this resistance tomorrow, accompanied by first hour trading volume exceeding 200,000, may give traders their next good entry opportunity. Money Flow and the MACD are both still outstanding. Although the RSI is fast approaching an overbought indication, this rally may have enough steam to carry the stock higher into the April 24th report. Please note that we have raised our stop to $89.00 in an attempt to lock in this week's profits.

Picked on April 15th @ $86.50
Change since picked +6.00
Stop Loss @ $89.00

April 17, 2001

Omnicom, a major player in the world of advertising, received a new high profile client yesterday that helped the stock get off to a good start this week. Goodyear Tire and Rubber (NYSE:GT) has awarded OMC with its $60 million North American advertising budget. Every positive move for OMC increases the likelihood that management will announce a split. The company's last split was announced in September of 1997 when the stock was trading at $70.50. OMC closed above the 50-DMA of $86.56 today and this event is a good sign that more gains are in the offering. Potentially profitable positions can probably be initiated as long as OMC stays above $$86.56. There is some resistance at $90.00. Therefore, one may want to be patient if there is a gap up to just below this resistance on tomorrow's open. That said, a close above $90.00 may provide a good buying opportunity in anticipation of a continued move on Thursday. The MACD is accelerating its ascent and the Money Flow is making new highs. These are two good technical signs that OMC will continue to move higher.

Picked on April 15th @ $86.50
Change since picked +1.80
Stop Loss @ $80.00