Ticker: IPG, Buy below $24.

Why I Would Buy

1. Cheap– Interpublic trades at less than 14 times forward earnings and 1.1 revenues.
2. RoE – Return-on-Equity is my favorite metric, IPG has maintained double digit returns on equity for the past decade.
3. Dividend – Currently yields over 3%.
4. Contrarianism – IPG is near a 52 week low.

What Could Go Wrong

1. High Beta – Advertising and media spend are strongly correlated to global economy, and is first spending to be cut in a downturn.
2. High Payout – Payout ratio has been steadily climbing, and is nearing 50% of earnings.

Disclosure: I am long IPG, please read additional disclosures here before taking any action based on this post.