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 24, 2001

Omnicom got knocked down with the rest of the market yesterday, and, consequently, we were stopped out of this position. Omnicom did report solid quarterly results this morning. The company beat consensus estimates by a penny with profits of $0.52. Omnicom did not announce a split today, however. We will continue to monitor this stock. If OMC continues to correct, look for the stock to find support at the 50-DMA of $86.72.

Picked on April 15th @ $86.50
Profit/Loss +2.50 (3%) (Stopped Monday @ $89.00)
Best Profit +6.20 (7%)

April 22, 2001

Some of last week's biggest winners were subjected to some light profit taking during Friday's option expiration action. OMC joined this group of stocks. Nevertheless, there is a strong possibility that OMC will continue its upward direction during this coming week's trading. OMC, a major player in the world of advertising, will likely be a strong beneficiary of last week's rate cut. An improving economy makes corporate America more willing to allocate resources to their advertising budgets. In addition, Omnicom announced on Friday that it has joined a group of the largest advertising firms that together will form an electronic market place. The electronic exchange will enable their clients to better conduct their media business dealings. The new B to B site should become operational during the current quarter. Moving to OMC’s technical picture, the stock found some resistance at $92.69 last week. Additional resistance will likely be found at the 52-week high of $97.50. Friday's pullback took the stock near our trailing stop of $89.00. Traders may want to add to positions if this support holds on Monday. A move above $92.69, with midday volume exceeding 600,000 might also be a good trigger event for momentum traders to try and pick up a couple of points. The MACD and Money Flow are both outstanding. The RSI did start to turn down on Friday after approaching a level that suggested an overbought condition, which bodes well for our play going into next week.

Picked on April 12th @ $86.50
Change since picked +4.19
Stop Loss @ $89.00