DG FastChannel, Inc.
Advertising is a vital part of the commercial market, often disappointing investors by piling expenses atop revenue; investing in advertising itself offers an opportunity to profit off those ever-present expenses. Three digital advertising agencies, Digital Generation (NASDAQ: DGIT), ValueClick (NASDAQ: VCLK), and Harte-Hanks (NYSE: HHS), exemplify some of the heights and depths (mainly depths...) of the sector. Are these cheap buys, primed to rise in value, or will the web more »
In short, it seems the market is worried about the recent acquisitions. Whether Digital Generation will be able to absorb these companies effectively should be made clear in the next quarter or two. I believe the most recent quarterly report contains all the bad news. Digital Generation can use their free cash flow to buy back shares and pay down debt going forward. The company is facing up to its biggest challenge which is the move away from print advertising. With recent acquisitions, the company is making the right moves to push more into web and display advertising. I'm willing to bet part of my CAPSCall reputation on DGIT and will be placing my green thumbs-up on the shares today. Do your own research into DGIT and see if the company deserves a spot in your portfolio.