On the heels of ace stock picker Meryl Witmer picking Media General (NYSE:MEG) in this week's Barrons, came news yesterday from the WSJ (sub. req.) that the company expects 2006 revenues to rise 14% to 16%.
One thing Media General has going for it is that most of its newspapers are community papers and not major dailies. As the linked WSJ story reports:
Media General's outlook seemed to demonstrate a recurring theme for newspaper publishers over the past two years - that companies with holdings in medium-size and smaller markets have been less affected by the precipitous declines in advertising revenue and circulation that have been so damaging in large metropolitan markets.
And, as Witmer stated in Barron's and I stated in my original rationale for owning the stock, the company's internet assets are growing:
Echoing a theme that will be heard throughout the two-day conference, Media General underscored its Internet operations. By year's end, the company expects its interactive media division to become cash-flow positive on revenue of $30 million. Web-based revenue is seen rising to $40 million in 2007 and $50 million in 2008.
The stock closed yesterday at $40.21, up 7/10ths of a percent.
MEG 1-yr chart: