Did Copley Sell Too Soon? Newspaper Stocks Rebound -- but Still Low
Copley Press sold the Union-Tribune last spring for the sharply-discounted value of its real estate. At the time, everything looked gloomy for the newspaper industry. In the last three months, newspaper stocks have rebounded strongly. However, they are still far, far below their earlier highs, and the volatile stock market is often disconnected from economic reality. Today (Oct. 12), stock of Lee Enterprises, owner of the North County Times, soared 18.8%, closing at $3.79. It has been as low as 24 cents within the last year. However, in 2004 Lee stock hit $49.83. Stock of Gannett, the largest paper chain, has been as low as $1.85 this year; yesterday it closed at $13.24. But this stock reached $91.36 in 2004. McClatchy closed at $3.36 today, up almost 6%. It has been as low as 35 cents in the last year. But it reached $76.05 in 2005. There is a feeling newspaper stocks got hit too hard when they were at their lows, which was right around the time Copley was negotiating and consummating the sale. However, there is still a feeling that the old, profitable day of metropolitan daily newspapers won't return, particularly since they have lost classified advertising revenues, that used to be as much as 40% of revenues.
More like this:
- Manchester paid more than $110 million for San Diego Union-Tribune — Nov. 22, 2011
- Copley Sold U-T at Bottom, Whether or Not iPad Rescues Newspapers — Jan. 27, 2010
- Brandes Gives Up on Newspapers — Dec. 4, 2009
- Stock of NC Times Parent Soars 50% on Good Newspaper News — Sept. 29, 2009
- Several Big U.S. Cities Could Be without Daily Newspapers by 2010, Says Rating Agency — Dec. 4, 2008