Ooh!Media Limited Now Down 80%. Is Now the Time Buy? (ASX:OML)

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ASX OML - OOH Media Share Price

Ooh!Media Ltd [ASX:OML] is down 80% from its December high.

Crickey, that’s not a place I want to be right now.

If that didn’t sound bad already, read this…

Ooh!Media went into a trading halt on 20 March. Then on 25 March it requested a further suspension.

Ooh!Media said it was considering a capital raising.

Today, the company announced its successfully garnered support to launch a capital raising.

The AFR said today that ‘Macquarie Capital is set to underwrite the deal which will get done at 53¢ a share, a 37 per cent discount to oOh!media’s last close.

And that…

The new funds would be used to strengthen oOh!’s balance sheet, as it battles a coronavirus-driven drop in earnings.

You may be wondering, is now the time to snag a bargain?

Well let’s take a look. But first…

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Who is Ooh!Media Ltd [ASX:OML]?

Ooh!Media is an advertising company.

They call themselves an ‘out of home and online media company’.

The company works with outdoor billboards in both digital and print.

Think about those billboards you see as you drive down the freeway…or even those located around your local shopping mall.

There’s a high chance Ooh!Media operates them.

It’s fair to say that the future of OML isn’t looking bright.

That had already came to light when founder Brendan Cook withdrew the company’s 2020 earnings guidance on 16 March?

We’ll see how this plays out over the next few months…but if you’re conservative like me, you may want to stay clear of OML.

Anyway, let’s take a look at the company chart…

What’s next for the OML Share Price?

ASX OML - OOH Media Share Price

Source: Trading View

[Click to open in a new window]

What you’re looking at above is the monthly chart of Ooh!Media.

What is clear is that OML has been in a weakening trend since it hit a top in August 2016.

OML has broken below the price it first went public at.

This is not a good sign for the company.

It may be fair to suggest that once it comes back to the market it will go as low  $0.53 — the same price it just raised money at.

It will be interesting to see how this plays out. I don’t see any reason to go ‘bargain hunting’ here. It’s going to take a long time for the advertising market to come back.

As always, this is not a recommendation to buy or sell OML. It is an update only. I hope you found it useful.

Until next time,

Jonathan Evans Signature

Jonathan Evans,
Analyst, Profit Watch

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