Posted on 03/17/2006 11:50:40 AM PST by Grampa Dave
Newspaper Stocks Slip
Friday March 17, 2:31 pm ET
Newspaper Stocks Slip As Big Names Face Credit, Share Downgrades
NEW YORK (AP) -- Shares of newspaper stocks fell Friday, after credit ratings agency Moody's Investors Service warned that it is considering downgrading Tribune and the New York Times Co. It also follows a stock downgrade on Tribune, whose papers also include the Chicago Tribune and Newsday in New York.
Tribune shares fell $1.10, or 3.6 percent, to $29.67 in afternoon trading on the New York Stock Exchange, putting the Chicago-based company's stock down 3 percent for the year so far.
Moody's earlier Friday said it is reviewing its debt rating on Tribune's unsecured, long-term debt, saying it has ongoing concerns about the outlook for the newspaper sector. Moody's also cited Tribune's high debt burden, versus its cash flow.
"Fundamentals in the newspaper sector will remain weak for the foreseeable future," Moody's said. "Of particular concern is the continuing downward trend in circulation and intensifying competition from online rivals."
On Thursday, Deutsche Bank analyst Paul Ginnocchio recommended that investors sell Tribune's stock, saying the company's February newspaper revenue was worse than expected, and that the second-half of 2006 "could significantly deteriorate from here." Ginnocchio previously recommended investors hold the shares.
The New York Times also faces a possible credit downgrade by Moody's. The ratings service earlier Friday said that it is concerned about the company's high financial leverage, deteriorating operating margins and weak free cash flow available for reducing debt.
New York Times shares fell 61 cents, or 2.3 percent, to $26.02 in recent trading.
The reports pulled other newspaper stocks lower as well.
Washington Post Co. shares fell $36.49, or 4.83 percent, to $718.50, while shares of local newspaper company Media General Inc. fell $1.59, or 3.2 percent, to $47.56.
USA Today publisher Gannett Co.'s stock fell $1.20 to $59.37.
Dow Jones & Co., publisher of the Wall Street Journal, was down 62 cents at $40.15 in recent trading.
The print mediots across the board got hammered today.
The Compost wasn't mentioned, but it/WPO at this time has the largest % loss of stock value. Has the Compost been Enroning its books like the Tribune/TRB and Ny Slimes/NYT.
DINOSAUR MEDIA EXTINCTION ALERT!!! I'm told the Discovery Channel is going to do a documentary on this extinction phenomenon....
What a darn shame (sarcasm off)
Yup....Happy St. Patrick's Day all.
The Good News has continued all day.
Are the insiders dumping WPO because they know that WPO has been Enroning its books?
WPO had over a 1% gain earlier today, and at this time it is at -4.8% loss versus yesterday, or a 6% drop in one day.
Hi big guy!
Isn't it a darn shame! :)
They couldn't adapt to the information climate change.
Lesson the MSM still haven't learned: you can avoid reality, but you can't avoid the consequences of avoiding reality.
Nice to see reality knocking loudly at their barricaded doors.
Start Shorting these POS's! WOOOOOHHOOOOOOO!!!!!!
Allow me a personal moment of clairvoyancy. I see job losses. I see firings. I see many, many layoffs. I see nothing but good news.....
"DINOSAUR MEDIA EXTINCTION ALERT!!! I'm told the Discovery Channel is going to do a documentary on this extinction phenomenon...."
If Discovery does this quickly, some of the dinos might still be alive.
Holy cow, you're right. I'm gonna short this all the way down to it's real value of $.10. Great idea. Any gueses when it will hit a dime! :)
The only stock sector that has performed more poorly than Media in the last year has been Automotive Parts.
The media's problem is two things:
1] The Internet
2] Their neglect of 50% of America by appealing only to RATs.
But, due to their stupidity, we must add one more:
3] Their failure to admit/recognize item #2.
I have an idea!! A museum of newspapers. And we could build it in Washington. It would have actual copies of the artifacts on display. We could call it a Newseum!!
Oh wait! They've alreay built it!
Got to leave for a few hours. I hope someone watches Cavuto to see if he comments on this. Back this evening.
One wonders how they are coping with the reality polls re their stock values?
The media's problem is two things:
What are the Auto Parts people doing wrong?
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