Monday, March 16, 2009

How Low Can Newspaper Stocks Go?

Mark Potts writes:

If you bought a copy of the national edition of the Sunday New York Times this weekend, guess what? That $5 newspaper cost more than one share of New York Times Co. stock, which closed on Friday at $4.25. (The New York edition of the paper is $4.)

That's just one illustration of how dramatically newspaper stocks have dropped in the past few months, accelerating a steep and steady decline that began in 2007. Indeed, newspaper stocks have dropped by an average of 77 percent just since the overall economic decline began in earnest in mid-September. That's double the 38 percent drop in the broader S&P 500 stock indicator in that six-month period, striking proof that the newspaper industry is doing even worse than the overall faltering national economy.

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