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Play of the Day (For Thursday)
- OMC INFO -
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Profile
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Interactive Chart
Wednesday, April 18, 2001

OMC - Omnicom $91.15 +2.85 (+4.65)

Tuesday's Comment:

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.

Wednesday's Update:

Advertisers historically respond very positively to rate cuts. With this being the fourth interest rate cut so far this year, OMC should be set to take on more business from clients that now have access to cheaper money. Today's move higher on more than two-times average trading volume showed just how much investors are anticipating an up tick in business for OMC. Looking at the chart, OMC traded right up to the bottom of the gap created back in early March. This may well turn out to be resistance, but any move above today's high might be a good entry point into OMC, as this would be a confirmation of the lack of overhead sellers. Support has come in at the 5-dma recently and we will look for to continue offering support as OMC tries to conquer resistance. Our stops remain at $80.00 to protect on the downside.


Picked on April 15th @ $86.50
Change since picked +4.65
Stop Loss @ $80.00 


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