1-Star Stocks Poised to Plunge: The New York Times?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, multimedia news and information company The New York Times (NYS: NYT) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at New York Times' business and see what CAPS investors are saying about the stock right now.
New York Timesfacts
Headquarters (founded) | New York (1896) |
Market Cap | $944.5 million |
Industry | Publishing |
Trailing-12-Month Revenue | $2.3 billion |
Management | Chairman/Interim CEO/Publisher Arthur Sulzberger, Jr. |
Return on Capital (average, past 3 years) | 8.9% |
Cash/Debt | $431.4 million / $774.3 million |
Competitors | Gannett |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 60% of the 424 members who have rated New York Times believe the stock will underperform the S&P 500 going forward.
Just last month, one of those Fools, TerryHogan, succinctly summed up the bear case for our community:
I know, I know, you can't wrap your fish n' chips in an iPad, but still. This industry is in long-term decline, and they really need a new model. Maybe it will just be Bloomberg and [Thomson Reuters] in 20 years, but whatever the case, I'm not banking on newspapers to be hugely profitable unless we have a wicked solar storm that wipes out all electronics.
If you want to retire rich, you need to protect your portfolio from any undue risk. Luckily, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers a small-cap play with business trends working in its favor. The report is 100% free, but it won't be around forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
