Friday, March 25, 2005

Newspaper Bargains

In the last year, newspaper and publishing stocks in the S&P 500 are down 9%, versus a 7% gain for the broader index. The selloff has left some print media giants with historically cheap valuations. Still, it's not easy being a bull on this sector.

"The last three years have not been fun," says Miles Groves, an economist and consultant to the newspaper business. Groves, who also publishes monthly and quarterly research, cites disappointing advertising results, sagging circulation stats and challenges ahead as readers devote more attention to bloggers, while media buyers send more dollars to the likes of Google and Yahoo!.

Full story at Forbes.com