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Lamar Advertising in Sweet Spot (‘Not’)

Published on January 05, 2006 | Email this article
lamar outdoor advertising

Lamar advertising is in the “hot” outdoor advertising sector - revenue grew 7.9 percent over the first nine months of 2005, according to the Outdoor Advertising Association of America - and Jim Cramer on Mad Money suggested viewers buy stock, in part because nobody can TiVo a billboard, and because Lamar is adding digital billboards which should increase sales.

 

But according to Marc Lichtenfeld in TheStreet.com, Lamar’s “execution is mediocre at best, it operates in ho-hum markets, and it’s valued like a dot-com circa 1999.” Lamar has, in fact, missed its earnings forecast and/or warned in three of the past four quarters, Lichtenfeld points out, and the stock is worth closer to $30 than the current $46.

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