Debate Politics Forums - View Single Post - Ny Times Hits 10-year Low On Downgrade

American · 07-10-08, 03:42 PM

Quote:

By KEITH J. KELLY

July 10, 2008 --
Hours after The New York Times Co. suffered the embarrassment of a third person scaling its Eighth Avenue headquarters in recent weeks, the company got pounded by Wall Street, which sent its shares tumbling when an analyst said its stock was pricey relative to its peers.
The stock sank 7 percent, or $1.05, to $14.01 yesterday, near its lowest point in 10 years and 77 percent off its 52-week high of $24.76.
The drubbing came after Lehman Brothers analyst Craig Huber slammed the Times' shares for being too expensive, compared with Gannett and McClatchy.
Huber also ratcheted down his previous price target to $8 a share from $12 a share, due to the industry having deteriorated faster than he earlier predicted, adding, "We think the shares have significant further downside risk over the next year as the stock is the most expensive in the [newspaper] group, plus Street estimates remain way too high in our opinion."
He urges the company, which is run by CEO Arthur "Pinch" Sulz berger Jr., to cut its dividend, claiming it should utilize the money to pare down the company's $1.05 billion debt.

You reap what you sow.

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