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.
We have waited a long time for the MSM mediots to harvest what they have sown for decades.
The horrors of those bad seed plantings are being harvested now by them.
love it.
This love is wonderful, isn't it!
How about a roll repeating Mrs. Clinton, Bill Clinton, Algore,teddy the killer kennedy, Mr. Teresa Heintz and maybe hanoi jane etc. I know I'd rather clean up with that then charmin.
That would work. Develop a 6 pack.
Die, New York Times, DIE.
Well, look at this little disclosure. One of the most expensive stocks in America appears to have the Enron Virus which leads to Enroning/cooking the books.
The Post will not reveal circulation and ad revenue figures to Media Life, but data available elsewhere paints an alarming picture. Ad revenue is up just slightly over the past five years, to $783.5 million last year from $770.6 million in 2000, according to TNS Media Intelligence.
But circulation has tumbled, falling by 137,695 for the weekday paper in the past decade, from 816,474 for the year ended Sept. 30, 1995 to 678,779 for the six-month period ended Oct. 2, 2005. That's a decline of 17 percent. That's according to numbers from the Audit Bureau of Circulations, the latter of which has not been audited yet and is based on publisher statements.
Warning to all Freepers. You should check your mutual funds to see if they are supporting these left wing dinosaurs: WPO, NYT and TRB. If so, you might want to trade those funds for those without the Enron virus/time bombs, aka, cooking their books.
"I'm told the Discovery Channel is going to do a documentary on this extinction phenomenon...."
I was very offended until I put my glasses on. Without them, I thought you said "excretion phenomenon."
Then I got to thinking. Even if you had, it would have been
correct, also.
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