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.
I would have to check the components of that index, but there may be a preponderance of parts makers for domestic cars, since GM and Ford are doign so poorly, and foreign makes are doing so well. Delphi went into bankruptcy which hurt also.
The biggest single group of ownership of WPO is the Berkshire Hathaway Mutual fund of the infamous Warren Buffet. This fund owns 17 % of total value of the company, and that is equal to a little over 3% of the value of the Berkshire Hathaway fund.
There was a big bump of money that just came into the market buying WPO stock and cutting their loss of the day to a little over 2%. One has to wonder if Buffet is wasting more share holder money like when he shorted the $ and went long on the Euro in 2004 to hurt GW. He cost his stock holders about $500 million for his hatred of GW with that move. Where is Elliot Spitzball Spitzer with this news?
On 12/31/2005: Berkshire Hathaway WPO Shares owned: 1,727,765 -$64,791,188 versus a year ago. Total WPO by Berkshire ownership = 17.3%. Total value of fund in WPO 3.1%
Great idea. Send the surviving Dinos quail hunting with Dick Cheney!
Did you see this line from the ojr.org blog?
"One major newspaper chain was just frog-marched to the auction block by grimfaced money managers. The others have watched their stock price slide for two solid years like a metro daily tossed onto a pitched roof."
http://www.ojr.org/ojr/stories/060316moor/
I like the UAW explanation. In general, the industry might be in a slump now, but only a union can make a slump into an absolute disaster.
Worth repeating:
Message to "Mainsteam Newsmedia":
Propaganda is boring!!!
Particuliarly DNC lies, spins, skewed polls and baseless hate GW opeds are boring.
"One major newspaper chain was just frog-marched to the auction block by grimfaced money managers. The others have watched their stock price slide for two solid years like a metro daily tossed onto a pitched roof."
He had some great lines and this was the best. I didn't read the whole article, but I got the feeling he wanted the lefties to go blog and tell their lies there. It "ain't" going to work. Just compare DU with Free Republic re volume and hits.
Well it's for sure J-school grads aren't the brightest bulbs in the world. It will be interesting now that everyone has a printing press and everyone is a potential "journalist," if that alleged profession will just go away..
Could there be any more joyful activity for a Freeper (financially speaking that is) than making money off the decline of the liberal media?
Sounds to me like you have a book here. See your freepmail.
It's been junk paper for years. Now it's official.
Hi ... Good to see you out here ... I sure hate seeing the MSM getting what they have been asking for ... warms my heart
Grampa Dave, great job, great post.
I couldn't have had a better story today.
Agenda driven news just doesn't sell and it shows that more folks are THINKING.
It's been junk paper for years. Now it's official.
Well, before this month is over, the NY Slimes and the Tribune may end up with official junk bond ratings. Moody's is apparently ready to do the big down grade on both of these pos.
Thanks for the kind words, Joe.
This may turn out be the year that the MSM pulp stocks took a beating and their bonds with the rest of America watching.
Every freeper needs to check their mutual funds to make sure that their funds don't own any newspaper stocks. The last thing we want to do is lose our investment $'s in the futile effort to keep these Enron Fishwraps afloat.
Wow, these maggot infested liberal editors and publishers make a great brunch!
You are wise, Use your investments to support institutions you support.
For instance I don't own any n.y. times stock. though I'd like to have fake n.y. times stock toilet paper
"You are wise, Use your investments to support institutions you support."
I learned that from my Grand Dad who tried to warn people not to invest in German and Japanese Companies in the late 1930's and up to Pearl Harbor Day. His rule was never invest nor buy anything from an enemy.
"For instance I don't own any n.y. times stock. though I'd like to have fake n.y. times stock toilet paper."
Joe, you have a great idea for a conservative gift. A roll of toilet paper with phoney stock certificates, a roll with the White House Vultures posing as reporters and one with the bad opeders and cartoonists.
This just in!!! Check it out..
http://www.freerepublic.com/focus/f-news/1598380/posts
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