The potential takeover of Ten Network Holdings Limited (ASX: TEN) is top of mind for investors speculating on corporate activity in the media sector, but this...

The potential takeover of Ten Network Holdings Limited (ASX: TEN) is top of mind for investors speculating on corporate activity in the media sector, but this isn't the only deal we are likely to see this year. I suspect Australia's largest advertising and marketing services company, STW Communications Group Ltd. (ASX: SGN), could also become a target with its share price falling 1.7% to a three-year low of 89.5 cents. The stock is one of the worst performers in the sector with a 40% crash in the past year compared with a flat return for the S&P/ASX 200 Cons Discretionary Index. The stock may look cheap on my estimates with a 2014-15 forecast price-earnings (P/E) multiple of 7.3 times and 12-month trailing yield of around 10% before franking, but the market thinks STW Communications is a value trap - meaning the stock only looks cheap on the surface. The de-rating in the stock is part management's fault. Click here to see who might buy the group and why: (VIEW LINK)