Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Lee Enterprises, Incorporated Jumped

By Jeremy Bowman - Feb 19, 2014 at 3:53PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful? Or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Lee Enterprises, Incorporated (LEE -0.84%) were looking stronger today, moving up as much as 11% after the newspaper publisher announced a cost-cutting strategy and an upbeat outlook.

So what: At its shareholders' meeting today, CEO Mary Junck said the company is off to a "solid start" in 2014, and said that digital revenue and audience grew by double digits. On the cost side of the equation, management said it expects operating expenses to fall 1.5% to 2.5%, while it expands advertising capabilities through mobile strategies and geotargeting.  

Now what: Lee, along with most newspaper companies, has been struggling lately, but the stock has been soaring, as shares have more than tripled in the past year. An investment from Warren Buffett hasn't hurt, either, as the billionaire has increased his stake in the small media company during the past couple of years. Still, this industry seems to be getting left behind by changing technology, though Lee managed to post a small profit in its last quarter. If it can keep costs down and expand mobile advertising, perhaps it can buck the overall industry trend.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lee Enterprises, Incorporated Stock Quote
Lee Enterprises, Incorporated
LEE
$20.00 (-0.84%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
377%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/09/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.