Omnicom (NYSE:OMC) is about to release earnings. Follow this Bear Case Scenario as you ponder management comments:
Omnicom has a history of making sound capital-allocation decisions, but there is a chance it will reach for growth in international markets by overpaying for acquisitions. The recent merger of equals smacks of desperation not innovation.
Social media, evolving technology and consumer preference are reshaping the way goods and services are marketed. Will Omnicom adapt quickly enough. there are not signs that they are in the new game.
Growth at this point is driven by top line spend decisions which Omnicom has little influence over.
George Gutowski writes from a caveat emptor perspective.