Motley Fool contributing writer Warren Gump, who owns shares in Dow Jones, likes the company because of its positioning in the field of business journalism.
Gump writes, “Dow Jones is an interesting case in that its operations seem to be on a different cycle from most other papers. The company’s print publications actually had an operating loss last year because of the tremendous decline in technology and business advertising since the stock market bubble burst in 2000. With continued economic strength, the company could see a cyclical upturn in demand in the next few years (the company’s recent ad lineage volume indicates that a bottom may have been hit).
“The company has also invested substantial resources to expand the coverage into ‘The Business of Life,’ adding sections on personal finance and launching a Saturday edition. Targeting affluent baby boomers, these sections should attract more general consumer advertising to the Journal’s online and print properties, opening up substantial new revenue opportunities. Meanwhile, the company’s institutional and online businesses are posting impressive results.
“On the other hand, local newspaper companies don’t interest me right now despite their seemingly attractive valuations. I simply can’t envision these companies’ strategic moves offsetting the likely continued declines in circulation and advertising revenues. Unless that happens, my investment dollars will stay on the sidelines.”
OLD Media Moves
The allure of Dow Jones as an investment
March 31, 2006
Motley Fool contributing writer Warren Gump, who owns shares in Dow Jones, likes the company because of its positioning in the field of business journalism.
Gump writes, “Dow Jones is an interesting case in that its operations seem to be on a different cycle from most other papers. The company’s print publications actually had an operating loss last year because of the tremendous decline in technology and business advertising since the stock market bubble burst in 2000. With continued economic strength, the company could see a cyclical upturn in demand in the next few years (the company’s recent ad lineage volume indicates that a bottom may have been hit).
“The company has also invested substantial resources to expand the coverage into ‘The Business of Life,’ adding sections on personal finance and launching a Saturday edition. Targeting affluent baby boomers, these sections should attract more general consumer advertising to the Journal’s online and print properties, opening up substantial new revenue opportunities. Meanwhile, the company’s institutional and online businesses are posting impressive results.
“On the other hand, local newspaper companies don’t interest me right now despite their seemingly attractive valuations. I simply can’t envision these companies’ strategic moves offsetting the likely continued declines in circulation and advertising revenues. Unless that happens, my investment dollars will stay on the sidelines.”
Read his comments here.
Media News
D CEO launching “Greater Good” publication
July 26, 2024
Media News
NY Post hires Franey to cover Wall Street
July 26, 2024
Media News
Woo moves to Google/Alphabet beat for The Information
July 26, 2024
Full-Time
WSJ seeks a deputy investigations editor for visuals
July 26, 2024
Full-Time
WSJ seeks a senior publishing editor
July 26, 2024
Subscribe to TBN
Receive updates about new stories in the industry daily or weekly.