It’s either a very, very good time to buy newspaper stock – or time to put us out of our misery.
Across the US the credit crunch, the flight of advertising dollars and the general fear that things will get worse — much worse — before they get better, have all dealt a body blow to the newspaper biz:
The market capitalization of the Journal Register Company, publisher of the New Haven Register and hundreds of smaller papers, fell below $1 million last week, down more than 99 percent since the start of 2007. In the same period, GateHouse Media, another publisher of hundreds of small papers, has dropped almost 98 percent, to a market value under $26 million. The Sun-Times Media Group is down 91 percent, to less than $34 million.
Now, it’s probably important to note that share price is reflecting people’s opinions, not necessarily earning potentials, but still…