New York Times (NYT): Buy the Paper, Sell the Stock

My inner contrarian says, "read all about it!"  My inner value investor says, "run away!"New York Times (NYT): Buy the Paper, Sell the Stock

 

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.