HERE IS MORE BAD NEWS FOR THE MSM!!!
Prudential Downgrades The New York Times Co.
By Jennifer Saba
Published: December 07, 2005 5:54 PM ET
NEW YORK Prudential Equity Research Group downgraded The New York Times Co. to "underweight" from "neutral" because the "fundamentals have been worrisome for some time," wrote analyst Steven Barlow in a research note released today.
The reason: The company is lagging behind its peers, it's offering little guidance for 2006, and its capital expenditures could double. "We have no choice but to recommend investors underweight this stock," the report said.
Year-to-date newspaper advertising and total revenue at the company rose 2%. Excluding About.com, total revenue increased 0.7%.
Prudential was not impressed with the company's November performance, singling out the New England Media Group, which recorded a 2.2% decline in ad revenue.
Additionally, the company explained it was not going to give estimates for 2006, though it admitted the upcoming year will be challenging. "This information was in contrast to surprisingly optimistic forecasts provided by four of the smaller market newspaper publishers so far at the conferences," the report said about this week's media conferences in New York.
The research firm also reduced its 2006 earnings per share estimate from $1.60 to $1.5
LOL!!! THE NEW YORK TIMES IS CONSIDERED "UNDERWEIGHT" NOW!!