Saturday, July 18, 2009

Newspaper stocks are value traps

Newspapers continue to respond defensively to declining revenue by implementing substantial--even draconian--cost cuts. Besides trimming page widths and eliminating unprofitable circulation, publishers have slashed employee headcount, declared unpaid work furloughs, and consolidated production operations. With newspaper stocks having fallen so far, and costs being cut so aggressively, can these stocks go much lower?

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