Stock choice: New York Times Company – Putting money in a dying industry

By Cici Chen

The New York Times Building on 8th Avenue between 40th and 41st Street

One common advice given to first time stock investors is to choose a company one is familiar with. As a devoted fan of the New York Times, I therefore decided to choose the New York Times company as my stock to follow.

Indeed, If one wants to make millions off a stock, a traditional newspaper company like the Times probably isn’t where the money should go. IBISWorld included newspaper publishing in its “10 Fastest Dying Industries In America” list. It predicts that revenue in the industry is expected to decline at an average rate of 4.2 percent per year for the next five years.

However the stock market is no place for amateurs, there is a pretty good chance I will lose money even if I invest in some rising industry companies like a clean energy firm. Therefore I would actually rather put my money in a company that I admire and believe in.

Below are some basic information and charts from Yahoo Finance.

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1 Month – NYT stock price

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1 YEAR – NYT stock price

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5 Years – NYT stock price

Below are some facts about the New York Times Company. (Taken from the company’s 2011 Annual Report & Form 10-K)

COMPANY SUMMARY: 

The New York Times Company (NYSE: NYT), a leading global, multimedia news and information company with 2011 revenues of $2.3 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, NYTimes.com,BostonGlobe.comBoston.com and related properties. The Company’s core purpose is to enhance society by creating, collecting and distributing high-quality news and information.

The Times newspaper commenced its publication in 1851. NYTimes.com was launched in 1996.

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In March 2011, The Times began charging consumers for content provided on NYTimes.com and other digital platforms.

Employee: Around 7000

COMPETITION:

The Times competes for advertising and circulation primarily with national newspapers such as The Wall Street Journal and USA Today;  regional newspapers and television stations in markets in which The Times circulates; and some national news and lifestyle magazines.

The IHT’s key competitors include all international sources of English-language news, including The Wall Street Journal’s European and Asian Editions, the Financial Times, Time, Newsweek International and The Economist; and news channels CNN, CNNi, Sky News International, CNBC and BBC.

NEW YORK–(BUSINESS WIRE)–Oct. 25, 2012– The New York Times Company (NYSE: NYT) announced today a 2012 third-quarter diluted loss per share from continuing operations of $.02 compared with diluted earnings per share from continuing operations of $.04 in the same period of 2011. Excluding severance and the 2011 special items discussed below, diluted loss per share from continuing operations was $.01 in the third quarters of each of 2012 and 2011.

NEWS

New York Times Digital Readers Help Boost Circulation by 40%

New York Times 3Q net income drops 85 percent

The New York Times Launches App for Windows 8

New York Times reports Q3 advertising revenues down 8.9%

From the company’s third quarter report:

* The Company had an operating profit of $8.5 million in the third quarter of 2012 compared with $21.0 million in the same period of 2011.

* Paid digital subscriptions across the Company totaled approximately 592,000, up 11 percent from the end of the second quarter.

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