1-Star Stocks Poised to Plunge: New York Times?

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, newspaper publisher New York Times (NYSE: NYT) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at New York Times' business and see what CAPS investors are saying about the stock right now.

New York Times facts

Headquarters (Founded)

New York City (1896)

Market Cap

$1.1 billion

Industry

Publishing

Trailing-12-Month Revenue

$2.65 billion

Management

Chairman/Publisher Arthur Sulzberger, Jr.
President/CEO Janet Robinson

Trailing-12-Month Return on Equity

(17.4%)

Cash / Debt

$37.3 million / $1.0 billion

6-Month Return

89%

Competitors

News Corp. (Nasdaq: NWS)
Gannett (NYSE: GCI)

CAPS Members Bearish on NYT Also Bearish on

Ford Motor (NYSE: F)
Lennar (NYSE: LEN)

CAPS Members Bullish on NYT Also Bullish on

Bank of America (NYSE: BAC)
Apple (Nasdaq: AAPL)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 66% of the 356 members who have rated New York Times believe the stock will underperform the S&P 500 going forward. These bears include All-Stars mrindependent and BigFatBEAR, both of whom are ranked in the top 2% of our community.

Just last month, mrindependent predicted tougher times ahead for The Times:

The New York Times will continue to suffer as the Internet erodes their base. Although [T]he [T]imes will continue to exist, it will be much less profitable. Besides its flagship, this publisher owns many other periodicals. Most of these periodicals will eventually cease to exist.

In an earlier pitch, BigFatBEAR published even more bearish sentiment:

Saying "nyet" to [New York Times], which happens to be one of my favorite news sources. I sincerely hope it does not go the way of the dodo! That said, shareholders ought to be cautious or downright flighty here. Negative revenue growth, profit growth. ... A bad current ratio, with increasing liabilities. The glory days of this stock appear well behind it -- seller around $7, with expectation to cover in the 5s.

What do you think about New York Times, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.

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11/30/2009 4:00 PM
BAC $15.85 Up +0.38 +2.46%
Bank of America Co… CAPS Rating: ***
GCI $9.89 Down -0.43 -4.17%
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LEN $12.67 Down -0.19 -1.48%
Lennar Corp CAPS Rating: *
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F $8.89 Up +0.16 +1.83%
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NYT $8.44 Down -0.32 -3.65%
The New York Times… CAPS Rating: *

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