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Why Buy Lamar? 10 Considerations

Why Billboards? 4 Fundamentals to Make Your Own

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Whenever news has the word Billboard, I am a sucker for opening and reading. When the post has one of the Big 3 Outdoor Operators names listed, it’s a ‘must read’.  If the article is full of charts and graphs, financials and forecasts, that’s a caution, if not red light, as it is not always the most interesting read, unless you’re an employee, stock holder or investor.

This financial article, A Billboard In Your Portfolio With Lamar, has charts, graphs and forecasts, and  begins with, “A captive audience is the holy grail …  It’s about Out of Home(OOH) as much as it focuses on Lamar financials. If you make your living in Outdoor Advertising, I recommend reading. Found in Seeking Alpha, and written by by Oisin Breen, the story has a tolerable amount of financial information. If you choose to ignore ‘the numbers’ or don’t give a darn about the investing potential of Lamar stock, it’s still well worth the read. Click here-.A Lamar Billboard in your Portfolio  

Save time, read OOH Today summary points below.
4 Fundamental Tenets you should make your own in your OOH next pitch or conversation.

  • “A captive audience is the holy grail for advertisers, and, as much as the internet attracts attention, only one form of advertising gets its message across to everyone. Regardless of whether the form adapts to new technologies — it does — outdoor advertising, the billboard, remains a remarkably reliable means of sales communication.”
  • “It’s no secret that advertising works, and it’s also true that a huge amount of ads get filtered out by consumers as noise. From ad-blockers to on-demand television, to no junk mail signs, and habits like listening to a playlist on the commute instead of the radio, it’s possible to live a life where most mainstream advertising passes you by. Such isolation might be a niche rather than the norm, but what consistently holds true is that some of the most traditional forms of advertising remain both the most iconic, and the most talked about, … billboards.”
  •  “According to research from Arbitron, billboards remain remarkably effective. 71% of U.S. consumers, who spend up to 20 hours in a car per week, on average, look at billboards. 56% admit to using OOH as conversation points, and a majority of those Arbitron surveyed, claimed to have later become regular users of products first discovered through billboard advertising”.
  • “Billboards are hard to miss and they also prompt customers to action. As many as 72% of billboard viewers shop on their way home.  A whopping 68% of consumers make shopping decisions during their driving commute, which is why successful marketers use billboard advertising to reach impulse buys. 32% of drivers went to visit a shop, restaurant, or business they saw advertised on a billboard during the week”.

10 Considerations to Why Buy Lamar Stock:

1Long-term share price growth is a solid 72% over the past five years.

2. Offers a healthy dividend of 4.57%.

3. Some forecasts predict gloomy times ahead for Lamar, with the argument being that high street portfolio expenditure is likely to hit the firm in 2018.

4. Lamar is a real estate investment trust (REIT).

5. Lamar owns more than 325,000 outdoor displays.

6. Lamar market-cap is  $7.13bn

7. Income over the past five years shows a well-run firm.

8. Lamar has strong sales of $1.5bn, and positively yearly profit margins of 20.34%.

9. The 3 year average profit margin is 19.67%

10. Lamar has a strong national presence, a diverse portfolio of advertising assets, valuable permits, and a long-term growth strategy that includes portfolio expansion and upgrade

11. Bill’s special final reason- Lamar knows billboards!

Graph of Lamar stock growth

I don’t own Lamar stock. I know little about the stock market. This is not a recommendation to buy, sell or hold.

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