New York Times Co. Becoming More Interesting

The total unique vistors and page views for New York Times Online has increased pretty significantly over the past few days.  This is obviously making it more viable as an internet ad play, and offset its lost print ad revenue.

NYT is still in cost-cutting mode and internet ads are not offsetting print as one would hope to see for meaningful stock appreciation. However, NYT does pay a dividend over 5%.

With this new sign of life in the internet space and cost cutting efforts, the dividend should be safe, making NYT a nice income play while waiting for the company’s internet strategy to turn the ship around.

This benefit from the internet looks to be from NYTimes.com, and not their overall internet strategy. Their internet strategy has been pretty weak - not aggressive enough to fully offset classified ad losses. But something is working, I do not know what yet. (Maybe it's the iPhone commercials showcased on the NYT’s home page .)

The chart is weak, and looks like a falling knife, but news with improved fundamentals and high dividend yield, in this rate cutting environment, should force a bottom.

Disclosure: none

Comments

[MASON]

You can not be serious in recommending this company. Look at what the charts expose:
Moving Average Convergence/Divergence (MACD) indicates a Bearish Trend.
Chart pattern indicates a Weak Downward Trend.
Relative Strength is Bearish.
Up/Down volume pattern indicates that the stock is under Distribution.
The 50 day Moving Average is falling which is Bearish.
The 200 day Moving Average is falling which is Bearish.
On top of all this, the Times has declined from a great newspaper to one with a political agenda. News Corp's WSJ will soon give them competition on the national level and impact even more their fall in subscribers.