Stock of Lee Enterprises, owner of the Journal Times, hit a new 52-week low this morning, falling to $13.61 per share, before bouncing back slightly. Back in February, a share of LEE was selling for $35.65. (Three years ago it flirted with $50.)
Of course, the reason has little to do with what's going on at 212 4th St. With circulation stagnating almost everywhere, newspaper stocks have been under attack for a number of years. The internet has siphoned away real estate, employment and automobile classifieds (and lots of news junkies as well, hmmm), and big box discount stores replaced traditional department stores and many hometown merchants.
Banc of America this morning cut its price targets on a number of newspaper stocks: McClatchy (MNI) from $26 to $15; GateHouse Media (GHS) from $13 to $7.50; Gannett (GCI) from $51.50 to $37.50; Lee Enterprises (LEE) to $15. Banc of America also downgraded The New York Times (NYT) from Neutral to Sell and cut its price target from $21 to $14.
LEE is far from the worst performer in its industry. McClatchy, for example, off its high from purchasing Knight-Ridder newspapers for $4.5 billion just 18 months ago, is down more than 2/3 from its 52-week high of $43.70. This morning it was $13.33.
Earlier this month, Journal Communications (JRN), owner of the Milwaukee Journal Sentinel, hit its own 52-week low of $8.07 per share, off a high of $14 in May. JRN stock today is selling for $9.
Best advice: Limit your investment to 50-cents at the box on the corner.
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