My first prediction for 2010 came true in 2009
Today's Financial News - Posted December 8, 2009
Sometimes the markets move faster or slower than we anticipate. That is certainly the case with the media industry and companies like McClatchy (NYSE:MNI).
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): My first prediction of 2010 came true in 2009. Just last week, in an issue of Notes From the Investment Underground, I made a bold statement.
I told readers the deal between Comcast (NASDAQ:CMCSA) and NBC had the media industry abuzz. I said to keep an eye on the sector as we enter the New Year.
We hit another bull’s eye.
If you follow the link and read the article, you’ll notice I say that McClatchy (NYSE:MNI) will be in play. Well, today shares of the newspaper publisher are up by over 14%.
How’s that for an accurate call?
Shares across the industry are on the rise today (bucking strong market headwinds), thanks to what can only be called less-horrible news from the advertising from.
Instead of the 30.2% decline in advertising revenues in the second quarter, or the 28.1% decline in the third quarter, McClatchy expects a decline of the low- to mid-20 percent range for the current quarter.
The end of a trend
Even better, especially if you work for the company, the publisher will lift its companywide salary freeze next month. That’s good news for the workers fortunate enough to stay clear of the nearly 4,000 jobs the company cut over the last year.
It’s a similar story over at the New York Times (NYSE:NYT), although shares are up by just over 1% so far today.
According to the company, advertising revenues are expected to drop 25% this quarter. The reduced bleeding has allowed the company to focus on cutting its debt. A year ago, the company was on the hook for $1.1 billion. Today, it owes $800 million.
The figures are far from indicative of a healthy industry, but it’s apparent the fallout has been abated.
Could 2010 be the year of the media turnaround? You know my vote. It’s already happening.
Next Article: TFN eNews 12/08/2009: Could Greek default clobber the euro?
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