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Thursday, June 02, 2005

From The Trouble with Newspaper Stocks

I love it when the market comes to where I already am at! From, a recent research highlight from Goldman Sachs. Welcome!

"The Trouble With Newspaper Stocks

Goldman Sachs
One New York Plaza,
New York, NY 10004
(Tel) (866) 727-7000

JUNE 2 -- The trouble with newspaper stock valuations is threefold. The stocks aren't cheap relative to historic valuation standards, even after the group's sharp underperformance over the past year.

Current operating fundamentals remain sloppy, suggesting the potential for further earnings-driven downside. And we don't see any near-term catalysts that might serve to bolster investor enthusiasm for the group.

The newspaper group needs to correct on average by another 16% before the stocks can be considered "value" stories. Dow Jones, McClatchy Co. and the New York Times are the most expensive names in the group based on our valuation methodology.

-- Peter P. Appert"


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