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Re: medimpact post# 9753

Tuesday, 07/22/2014 7:29:41 AM

Tuesday, July 22, 2014 7:29:41 AM

Post# of 39095
UCPA is a medium sized independent media agency that is also publicly quoted. That makes it quite special. In fact, media agencies are either part of a large, globally listed network or they are privately owned. I wonder if that unique positioning negatively affects the company's ability to gain market exposure.
By joining Columbus Media International the company is now gaining access to global clients. I would assume that interest will follow.

UCPA is shining in top-line growth, but the company has yet to convince with bottom-line results. That may also contribute to the lack of interest.

Anyway, UCPA's self-sustaining for years with no shares being issued to finance the impressive growth rates and expansion efforts. That clearly speaks for the company.

The stock is also undervalued by comparable analysis.
The sector-wide price/sales ratio is around 1.33 (current as of January 2014). Also, it's normal to see low margins.

http://people.stern.nyu.edu/adamodar/New_Home_Page/datafile/psdata.html

At 40m revs that would equal a pps of $0.033
At 30m revs that would equal a pps of $0.025