Published on 29th January 2012
"Another share that has caught my eye is Chime Communications, a media agency with interests in public relations, advertising and sports marketing. Whereas the company´s profits have grown steadily for several years, the share price is similar to where it stood in October 2009. This puts the shares on a projected price-to-earnings (p/e) ratio of 7 for 2012, versus an industry average of 9.4. A gap of this magnitude suggests potential for a price gain of one-third to reach the industry average. I believe these shares are significantly undervalued. Advertising firm WPP apparently agrees. It has been a steady buyer and holds 17% of all outstanding shares. A bid for the rest cannot be ruled out," says David Schwartz in the Financial Times´ Weekend Edition.