Lamar Advertising Company (NASDAQ:LAMR)

CAPS Rating: 2 out of 5

An outdoor advertising company that operates three types of outdoor advertising displays: billboards, logo signs and transit advertising displays.


Player Avatar Clint35 (60.22) Submitted: 12/6/2012 9:44:32 PM : Underperform Start Price: $38.90 LAMR Score: -11.21

Way too expensive! Sales are growing at a little under 3.5%. But the P/E is 429. Before anybody yells, "Sales are expected to pick-up because of growth in digital billboard advertising!" Let's do a little math. Let's say sales do pick up and they get to a point where they're earning $2 per share. Divide the share price $38.64 by $2 that gives you a P/E of around 19. That's still too expensive in my opinion. But if the P/E and sales growth get to where they're matching that's when I'll end this call. Until then, I can't picture this one beating the market. By the way, they also have a lot of debt. 63 times more long term debt than cash. Happy holidays everybody :)

Member Avatar shamapant (83.76) Submitted: 12/6/2012 11:25:55 PM
Recs: 0

the reason it's up so much is coming REIT status, I believe. That will increase the dividend a TON and the market will value the stock more like a very variable bond than a stock...anyways just a warning.

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