New York Times' Shares Surged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of newspaper and media company The New York Times Co. (NYS: NYT) jumped as much as 12.5% today on above-average trading volume.
So what: Mexican multibillionaire Carlos Slim has long held a large stake in The Gray Lady, but recent SEC filings show that he upped his interest from 7.5% to 8.1% with another batch of buys. Slim, who is currently the world's richest man thanks to his interests in Latin American telecoms America Movil (NYS: AMX) and Telmex (NYS: TMX) , clearly sees opportunity in The Times.
Now what: On the face of it, The New York Times appears headed for obsolescence in the face of onrushing Amazon.com (NAS: AMZN) Kindles, Apple (NAS: AAPL) iPads, and other newfangled ways of consuming media that don't involve ink and paper. But it's not too late to join the digital era. Slim's fellow ultra-Croesus Warren Buffett also likes this sector, as shown by his commitment to The Washington Post Co. (NYS: WPO) . And neither the Slim empire nor Berkshire Hathaway (NYS: BRK.B) was built by Luddite losers. If nothing else, these publishing stocks sure look temptingly cheap.
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