NYT Value

Poynter Online - A Bad Year for Newspaper Stocks, A Worse Year for the Grey Lady lists valuations of the top newspaper stocks in the U.S. The Times trails the pack, losing 35% in 2005. Author Rick Edmonds writes:

What is wrong with the New York Times Company as an investment? As noted in earlier reports on how investors look at the newspaper business, this probably has little or nothing to do with editorial quality and news investment, still top of the line despite the bumps in recent years of the Jayson Blair and Judith Miller affairs.

Even just looking at business matters, the Times would appear relatively robust. The New York Times itself has held circulation much better than most. Charging nearly $600 a year, the paper generates by far the most circulation revenue per copy and is first in ad revenue per copy as well. Plus the Times has been a leader online.

Analysts think the trouble lies in some other indicators. Douglas Arthur of Morgan Stanley cited "the single worst ad revenue trends in the industry, led by the Boston Globe." He added that numerous misses on earnings estimates and "comparatively poor cost control" could be factors too.

I think the Times online really misses the mark. While more people seem to be heading to the Internet to obtain news and information, the Times restricted access with premium subscriptions.