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| New York Times (NYT): Buy the Paper, Sell the Stock |
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| Written by David Neubert | |
| Monday, 26 February 2007 | |
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My inner contrarian says, "read all about it!" My inner value investor says, "run away!"
When I see a stock as beat up in the financial press as I see New York Times Company (NYT - $25.61) I look at it as a potential buy. But I just cannot convince myself on the New York Times. According to First Call, it has a p/e of over 20 for 2008. There is no chance of a takeout because the stock is controlled through a voting structure which favors the founding family over owners of capital. Add to that the increasing disintegration of print advertising (especially classified ads) at the hands of the Internet, and I just can't step up. New York Times Company is just plain overpriced. And I can't short it either because this family might do something to change the current capital structure to benefit shareholders. I just watch in frustration. Because I think that The Times will be one of the winners on the 'Net in the long run, I'll keep it on my radar and wait until it drops below $20 to take another look.
Disclosures and Confessions: I do not own and have not traded in the past two years, NYT . The New York Times, you are my, favorite daily paper. You became my favorite when you let loose your editorial last year and actually came out against this presidency. You are finally not afraid to have a biased opinion. I respect you for that. Barrons and Wall Street Journal, I still love you lots too. But I admire the bravery and intellectualism of the Times much more. Disclaimer: Nothing in this trade log is meant to be specific financial advice or a recommendation to buy or sell. I do not give investment advice. Do your own research. Do not rely on anything in this weblog to make investment decisions. I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security. Options may be for me but they are are not for everyone.
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(2)
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written by chuck kung , February 27, 2007
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written by done with NYT , January 13, 2008
NYT = neo-con ---> 4,000 dead Americans, 151,000 dead Iraqis ----> no foregiveness. not now, not ever.
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but also consider the pros-
1. they own about.com which has shown excellent growth (although it needs a redesign). does the valuation reflect the about.com's unique visitor numbers and growth?
2. new york times is a generator of first rate content. this content is mostly associated with print but it's can be and is platform agnostic. take a look at the times select and also the video content they are generating on the site.
3. as the technology to deliver content over internet matures,i think the content folks will do a better job distributing and monetizing this content. 5 years ago there was quite a gap between consuming internet news and info on portals (aol,yahoo, etc) vs sites like nyt. now that gap has closed.
disclosure: i am long nyt