New Media started at Buy at Compass Point


"We view shares of New Media (NEWM) as an opportunity to invest in a viable business strategy with a clean balance sheet at a price that appropriately reflects well known industry challenges," says analyst Jason Stewart, starting the Newcastle (NCT) spinoff with a Buy and $18 price target. "At a high level, NEWM’s business strategy is simple: implement technological improvements and make strategic acquisitions. The company has several levers to pull for growth, and unlike some of its peers, a clean fair value balance sheet and minimal leverage."

Stewart's earnings estimates already account for declining circulation volumes and lower advertising per publication, and he notes the stock trades at a EV/2015 EBITDA ratio of 5.7x vs peers at 7.5x, despite better growth prospects and a cleaner balance sheet for New Media.

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Comments (3)
  • Michael Bryant
    , contributor
    Comments (6721) | Send Message
     
    And (NEWM) gives a good dividend. Maybe I should buy more.
    7 Mar 2014, 12:08 PM Reply Like
  • Len Friedman
    , contributor
    Comments (93) | Send Message
     
    Where have you gotten info regarding a dividend? I should think it's a bit early for the BOD to know, let alone publish unfounded expectations.

     

    Len
    11 Mar 2014, 08:23 AM Reply Like
  • dick59
    , contributor
    Comment (1) | Send Message
     
    need to see statements @earning statements. background of senior of management and a plan of action.R.CARPENTER stockholder
    7 Mar 2014, 12:55 PM Reply Like
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