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No. of Recommendations: 15
<Disclosure: I do not own this stock. Pls throw a rec to continue the series. Thx!>

I own a collection of newspapers with regional and national coverage. I am cheap in comparison to my peers. While my sales are somewhat similar to Washington Post, my market cap is roughly half of WPO. My current market valuation to sales is 1.2, to earnings at 13.6 and to cash flow at 13.7. In 2003, I acquired full ownership of a growing international newspaper that competes head to head with WallStreet Journal and UK's Finacial Times. I am in a cyclical business and dependent on advertisement. Analyst are anticipating slow growth of 3% in line with the economy. I provide a dividend yield of 2.3% and has stable capital expenditure eventhough the trailing twelve month capex has increased somewhat. One red flag is the long term debt which has increased about three times Net Income. My net income is lumpy, in fact the whole industry is in the doldrums as it grapples with the threat of online new media companies.

What Company am I ?
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No. of Recommendations: 0
That's an easy one, the company's all over the news:

Knight Ridder (NYSE: KRI)

Regards,

AlexD
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Ray,

It serves me right for not looking beyond the "obvious" choice. Still, I had actually checked some of the numbers (mkt cap, ratios) and they appreared consistent with those for KRI.

I'm going to have to pass the baton to someone else on this one.

Take care,

AlexD
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Answer: New York Times A NYT

NYT owns New York Times, Boston Globe, International Herald Tribune and About.com, it also owns about 15 regional newspaper, 8 network affliated TV stations and 2 Radio Stations.

Morningstar rates it a 5 star with a fair value of $40 with below average business risk and a narrow economic moat.

The Bull case:
+ growth in about.com
+ investment in newsprint mill a partial hedge against paper costs
+ diversification of new york times

The Bear Case:
- Boston globe in steady decline
- Cyclical and dependent on economy

some financial numbers:

Revenue 1995: 2409 2615 2866 2937 3131 3489 3016 3079 3227 3304 3346 TTM
NetIncome1995: 136 85 262 279 310 398 445 300 303 293 305 TTM
SharesOut1995: 193 194 197 192 179 171 160 154 152 149 146 TTM
Capex 1995: -201 -211 -153 -82 -73 -85 -90 -161 -121 -154 -201 TTM
FreeCashF1995: 94 215 299 370 528 505 381 113 345 290 102 TTM
RetEquity1995: 8.6 5.2 15.7 17.1 20.8 29.3 36.6 24.8 22.8 20.9 21.7 TTM
LongTDebt1995: 638 637 535 598 598 637 599 729 726 471 898 TTM
PE 1995: 21.2 43.7 24.8 23.3 28.4 17.3 34.3 23.6 24.1 20.8 14.8 TTM


raytoei
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