Posted on 01/20/2006 2:09:35 PM PST by abb
NEW YORK Last year is shaping up to be a stinker for the newspaper industry. The sector turned in one of its worst performances in a decade, with newspaper index stocks down 21% during 2005 -- underperforming the S&P500 by about 24%, according to a report released today by Goldman Sachs.
"It was a clean sweep, with all nine of the newspaper publishers in our coverage universe posted negative stock price performance for the year," said the report. "It's enough to make a newspaper analyst cry."
The upside in 2006? Not much. The revenue environment is going to be challenging, cost issues continue to put pressure on margins, and earnings estimates are still too high. "Otherwise, things look great!" the report said sarcastically.
Newspaper stocks will probably lag again in 2006 unless the possible purchase of Knight Ridder comes through above expectations.
Goldman thinks there's a possibility that a financial player will be willing to be aggressive and pay a higher price for Knight Ridder (above $70 a share). "We note, however, that offers from strategic or financial bidders that fall close to or below the current share price of Knight Ridder would be a disappointment," the note said.
If a Knight Ridder deal doesn't fan the flames, then investors will look to industry fundamentals to guide their strategies. In that case, the research firm forecasts 3.6% ad revenue growth for 2006, the low end of the industry's 3% to 5% range.
Analysts believe that the sector needs to "retreat" another 11% on average before it can be considered a value. Jennifer Saba (jsaba@editorandpublisher.com) is associate editor for E&P.
Now that's funny.
I think the headline should be "2005 one of the worst years for LIBERALS ever".
I saw a headline that "Brokeback Mountain" is number one right now.... only to find that this is because ALL movies are going into the toilet on revenues.
The MSM is going down. The Dems are going down. Hollywood is going down.
Kinda brings a smile to my face!
Imagine if they reported the right circulation numbers.??
There will be 1000s of unemployed newspaper hippies next year.
Apparently they believe the remedy is to publish more liberal, less accurate information. Our local newspaper (Columbus Dispatch) has become a direct funnel for whatever editorial the NY Times is peddling as news.
Some who are working for Knight-Ridder papers in Philly are hoping that Pew will buy one of the KR papers there so they can continue to push their liberal nonsense free of any market pressures.
LOL They'd like us to think their problem is somehow related to the rising cost of ink, but losing a quarter of your readers doesn't help any, either!
The MSM is going down. The Dems are going down. Hollywood is going down.
Kinda brings a smile to my face!
Funny, I used to enjoy going to the movies. Now I don't even pay attention to what's coming out other than "next in the series of..." some favorites. LOTR, now Narnia, etc.
I can watch much better movies on TCM or AMC on just about any given night and not feel as if I've gone to a political rally in the form of a "movie." These producers and actors have some balls trying to force their brand of politics, almost always liberal, down our throats while billing it as "entertainment," which traditionally is what movies are supposed to be.
I, and I'm sure I'm not alone, have simply quit paying any attention to Hollywood. Even the awards shows are nothing but quasi political rallies these days.
People want to be quick to say its because of their liberal polices have come home to roost, but, consider, that most people whom have any education can afford a computer, and many have 24-hour cable news, they wont need a paper any more. The only ones who be left in the market in the long run will be the uneducated that don’t speak English therefore whom don’t earn very much money and cannot afford or understand electric media, and or refuse to assimilate to the modern world.
Therefore are the liberal socialist polices of these papers causing people to leave, or are they designed to attract new readership, those from poor counties and the uneducated that don’t understand or value conservative ideas?
Could be wrong, but that just how I see it unfolding, and therefore the losses are not really telling the whole story, they are just loosing out on the English media, and they have a bail out plan which wont include services to US citizens, which in that context can help to explain why the paper's policies are not very supportive of this country.
Hoy Readership Increases 27% in Los Angeles
Wednesday October 12, 2005
Double-digit audience growth continues in all markets for the only national Spanish-language newspaper
CHICAGO, Oct. 12 /PRNewswire-FirstCall/ -- Hoy, the nation's leading Spanish-language newspaper, with daily editions in New York, Los Angeles and Chicago, today released new Scarborough numbers that report its Los Angeles daily readership increased by 27 percent for the most recent six-month 2005 measurement period. For the entire 12-month period, readership averaged 176,300 per issue and 420,100 per week.
"These are terrific numbers for a newspaper that has been in the market for only 18 months," said Gisselle Acevedo-Franco, President and General Manager of Hoy Los Angeles. "It reflects Hoy's strong connection to the needs and interests of Los Angeles area Latinos
To the MSM: You will reap what you sow.
Translation: Choke on it, you morons. You chose the wrong side and you are paying for it. Keep it up NYT -- great job!!
To add to the ignorance of the MSM, I find most of the liberal rags require registration to access their tripe online. I refuse to register for any newspaper.
i do too
And this is news to no one - EXCEPT the newspapers.
You're not alone, I haven't been to a Hollywood movie in six years; nor have I rented one.
I just don't like the political stuff they produce. It's funny that they don't seem to care about not making as much money as they should, but they don't.
More power to 'em, but I think they are going down.
Well who in the hell wants to read 'doomsday' hypotheticals, liberal op-eds disguised as news, the story on the MILLIONTH poll this week, HATE HATE HATE AND MORE HATE, and or TOP SECRET info that pisses you off AS you read it?
Bush's Fault... he and Rove MAKE them MAKE THEMSELVES look st00pid
And in other "turn of the century news", buggy whip futures are off...
And in other "turn of the century news", buggy whip futures are off...
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