1-Star Stocks Poised to Plunge: The New York Times?
May 16th 2012 9:51AM
Updated May 16th 2012 9:52AM
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, multimedia news and information company The New York Times (NYS: NYT) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at New York Times' business and see what CAPS investors are saying about the stock right now.
New York Times facts
|Headquarters (founded)||New York (1896)|
|Market Cap||$944.5 million|
|Trailing-12-Month Revenue||$2.3 billion|
|Management||Chairman/Interim CEO/Publisher Arthur Sulzberger, Jr.
CFO James Follo
|Return on Capital (average, past 3 years)||8.9%|
|Cash/Debt||$431.4 million / $774.3 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 60% of the 424 members who have rated New York Times believe the stock will underperform the S&P 500 going forward.
I know, I know, you can't wrap your fish n' chips in an iPad, but still. This industry is in long-term decline, and they really need a new model. Maybe it will just be Bloomberg and [Thomson Reuters] in 20 years, but whatever the case, I'm not banking on newspapers to be hugely profitable unless we have a wicked solar storm that wipes out all electronics.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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