Companies: INF   

Since WPP's bright and breezy comments regarding future prospects for the advertising and broader media sector, the good news floodgates opened as a raft of ventures, big and small, reported that they were witnessing the opening of corporate cheque books for all manner of activities – from advertising and marketing campaigns to product launches and exhibition openings.

On the corporate front there has been much activity, not just among national newspaper operators but in niche areas as well — witness Taylor & Francis' proposed merger with Informa. In the internet space, everything seems buoyant with Yell moving into profit, Google intent on going public, Lycos launching a new service and, in a development that has blanket implications for media content plays, BT aggressively launching its broadband offering to all consumers in the UK at competitive prices.

In the midst of improving fortunes and impressive figures though, investors should bear in mind that the sector boasts a p/e of 26.85, the highest rating of all the 'cyclical' industries and the sixth highest rating of all 36 recognised sectors. Enter the arena with care.