Ron Paul Supporters Claim Hand in News Corp 'Rout'

News Corporation (NWS), controlled by Rupert Murdoch, owns Fox News.

Fox News is currently embroiled in a life-and-death struggle with supporters of GOP presidential candidate Ron Paul. Paul supporters are understandably upset that their favorite was and remains excluded from a forum to be televised by Fox that is sponsored by the Republican Party of New Hampshire.

Was sponsored by the Republican Party of New Hampshire, one should say.

The granite state‘s GOP has just pulled the plug on its sponsorship of the forum - in protest of Fox News’ refusal to (a) let Ron Paul participate in the five-candidate roundtable discussion, and (b) give an explanation of their reason to the New Hampshire GOP - or to even return its leaders’ numerous phone calls.

It cannot be denied that Paul supporters relentless pressure had at least a hand in getting the state party headquarters to make that drastic move. What is not quite as clear, though, is whether Ron Paul supporters’ tireless protests, blog posts, editorials, and news articles asking investors to shun NWS stock really had all that much to do with News Corporation’s recent drop off from an already eight month old decline in the value of NWS’s shares.

This three-year chart shows the stock’s history:

Needless to say, NWS has some serious difficulties already. Its chart shows not only one major, but a quickly succeeding second “double-top” pattern, a pattern that stock chartists universally regard as very bearish.

Since the entire spat did not come to a head until a blog post on December 27, 2007 reported that Ron Paul was excluded, it is rather clear that Paul supporters had nothing to do with the origins of this rather significant decline.

But that doesn’t mean they can’t make it even worse.

Paul-friendly blogs and editorials are falling all over themselves to disabuse investors of the notion that NWS could bring them any profits anytime soon because they advise all future Ron Paul voters to dump NWS stock and stop buying products from Fox News advertisers

The possibility that their efforts can have significant impact should not be underestimated. They have drummed up enough support for Ron Paul in Iowa to get their candidate 10 percent of the state’s caucus goers’ votes.

They also had enough firepower to voluntarily orchestrate two consecutive “Ron Paul Money Bombs” which netted the “Champion of the Constitution” as they call Paul over ten million dollars and propelled their candidate to the likely top of the entire GOP field’s Q4 fund raising booty.

They see themselves as a fighting a peaceful “revolution” - a movement, even, that will restore the country to its constitutional roots.

The fact that they can have a disproportionate effect in the political sphere cannot be denied. If they can now prove their economic clout is equally pervasive, Murdoch’s News Corporation could see some very choppy waters ahead. Quite possibly, other investors may be catching on, Since December 27th, the stocks value has declined more rapidly than it did before.

Who would want to own a stock that finds itself under such a negative media barrage while already under serious plenty of pressure for other reasons?

Disclosure: none

Comments

[Dr. C.]

Way in the green and donating the profits to Ron Paul.

[AnneinTexas]

The Revolution will be televised, one way or another..

[Malkiel]

Looks like the right wing is rebelling against its establishment in the same way that Howard Dean and Ned Lamont kicked blew out the doors of the Clintonite machine for the left. Good for them, good for us. Clearchannel needs to be the next target...

[mketcher]

What the Ron Paul is doing is demonstrating, in spades, how the traditional "Mainstream Media," (Fox, etc.) is slowly disintegratring -- and the new media (which is decentralized, not controlled by gov't and big corporations, interactive) is growing. Newspapers have seen their circulation decline. The big networks are losing their influence. Ron Paul, because he advocates decentralization, local control, and open-ness in gov't. is riding the crest of this wave. The decline in the stock price of Fox reflects this broad trend, but it's exacerbated by the stupid policies of Murdoch -- and his use of Fox as a propagandistic vehicle for neocon views.

Also worth considering: Many of the independent financial newsletters -- particularly the gold-oriented or hard-money newsletters -- are supporters of Ron Paul. They're not going to be recommending Fox's stock in their newsletters -- and if anything they'll be trashing it.

Why would anyone buy stock in a “News” organization that seems so intent to lose whatever credibility that it might have had? If I had stock in Fox, I’d sell it to. If I were a speculator, I’d short the stock. If I were an advertiser, I’d put my dollars elsewhere. As far as I'm concerned Fox News is now the enemy.

For a great satire on the president, the mainstream media, and the war on terror, see this YouTube music video from the international award-winning zombie musical feature film, “Song of the Dead.” It’ stars horror movie veteran Reggie Bannister (Phantasm, Wishmaster, Bubba Ho-tep) as the president of the U.S. The filmmaker, Chip Gubera, is giving a share of his profits from DVD sales to the Ron Paul campaign. Go to:
youtube.com/watch?v=qQ...

[CIAhit-list]

this is all a load of shit smoke and mirror show to make it look like they have to keep a candidate they dont like off of tv. the elections are fixed with Diebold machines so it doesnt matter one way or the other. but distractions such as this serve to take your mind off that fact and think youre accomplishing something. and it generates tons of cash for Ron Paul's website. Cash that will disappear after the election.

[mnguy29]

I carefully went through my retirement planning this weekend, and today my order to sell all funds containing News Corp stock will go through. I also sold a fund which I found contained a large amount of Halliburton stock. As a society, we need to stop condoning the behavior of corporations like these.

[Republicae]

The CEO of Overstock.com has pulled its sponsorship of FOX news because of the Ron Paul shun. Of course, the CEO has also endorsed Dr. Paul for President.

[NBK]

I agree with most of the posts here. As this article shows, the stock drop started before the Paul event. I suspect someone is spreading false news that Ron Paul supporters are to blame just to throw rocks at Ron Paul. This country sure going to you know what.

[MTY]

I shorted 2000 shares on the 27th after hearing about the boycott/selloff, and covered half last Friday at a very nice profit. That gives me some breathing room to ride the short down for another leg......

And I suspect we'll see that other leg materialize. Paul supporters are committed if nothing else, and I don't expect to hear that they've give up the battle against Fox & Murdoch. I'm expecting to make about 6-8 points before I look to cover.

However you feel about Paul's policies, if you're a stockholder, you can't be very pleased about Fox's rationale for excluding him and the resulting (unless it is coincidnetal) slide in the share price.

Keep it up, Paulites. Baby needs a new set of shoes, and I want Rupert and Roger to foot the bill!

[bansidh]

We have no news anymore. We simply have propaganda, large corporation advertisements made to look like news and government announcements also made to resemble news. For some actual news, watch Democracy Now, or INN report

[Reinhard]

When dealing with punitive actions in a free market, one should be careful, since after all the product is fungible, and the value will still be the present value of all future cash flows. Short-selling the stock will hardly drive it down much, since someone else will just buy more. But there is something to say about the price multiple one puts on a stock, and about possible lower future earnings due to a damaged reputation. The first is equivalent to avoiding Phillip Morris, if one is against smoking. You will still pay a 7x multiple to earn money, but you might not pay 10x because you don't feel good for holding them as an investment. If many people won't touch NWS stock for the next ten years, it will dent slightly the marginal buyer.

The second is more important. If Ron Paul supporters are among sponsors of FOX, they will be reluctant to pay as much as on other channels. Same, if they get bombarded by supporters. Also, all FOX related companies will be bogged down by complaints which will disrupt their business.

The main impact will be how long supporters will keep up the continuous e-mailing and calling. If they can keep this up continuously for a year, NWS' earnings will be affected at the end of the year.

[RRR]

Fox, etc. - All talking heads. No real news. When is the last time you saw a reporter in the field? We have tons of opinion and a lack of actual on-the-ground reporting.

There is a lot of stuff going on in the world, but all we get are re-hashed stories about celebrities.

I would invest in a company that spends it's money on working, traveling, on the ground reporters, and less on anchors, pundits, and agendas. Go Ron Paul people!!

[bluskye]

I have seen at least 5 places in my town...Tulsa OK...where someone has spray painted Ron Paul's name in large letters (as in 5-6 feet for both names), in public places. What is with this? Are his supporters so lame they think that will help promote their candidate, or are his opponents doing it?

Anyone else seeing Ron Paul graffitti in their town?