Monday, January 04, 2010
Newspaper stocks revive—up as much as 10 times over last year’s lows
by Larry Geller
Laying off all those reporters and newsroom staff may have worked (if you’re not one of the reporters or a newspaper reader, of course). Stocks have rebounded.
If you had bought them at their low earlier this year and just sold, you could have enjoyed a ten times profit on your investment. Newspaper stocks are also up substantially over where they were a year ago.
Gannett (owners of the Honolulu Advertiser), for example (see chart in the article), is currently fetching about $14.85. It’s low was $1.85. Well, who knew.
As the article points out, this does not mean that the newspaper business has suddenly turned around.