Thursday, July 10, 2008
Happy Happy Joy Joy
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.Schadenfreude is over-rated, but then again Karma is a black hearted one.
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" Sulzberger Jr., to cut its dividend, claiming it should utilize the money to pare down the company's $1.05 billion debt.
Labels: New York Times Decline