NEWM (Part of Pair Trade: NEWM/EVC)
New Media Investment Group Inc
TMT
05/11/2015
Presented
| Date | 05/07/2015 |
| Price | $22.39 |
| Market Cap | N/A |
| Ent Value | $1.33B |
| P/E Ratio | N/A |
| Book Value | $13.83 |
| Div Yield | 5.9% |
| Shares O/S | 44.47M |
| Ave Daily Vol | 310,000 |
| Short Int | 2.13% |
Current
| Price | $5.74 |
| Market Cap | $0.85B |
| New Media Investment Group Inc. owns, operates, and invests in local media assets in the United States. The company’s principal products comprise 93 daily newspapers with total paid circulation of approximately 842,000; 256 weekly newspapers with total paid circulation of approximately 297,000 and total free circulation of approximately 741,000; 103 shoppers with total circulation of approximately 2.6 million; 379 locally focused Websites and 360 mobile sites with approximately 119 million page views per month; 6 yellow page directories with a distribution of approximately 430,000 that covers a population of approximately 1.1 million people; and propel digital marketing services. It also produces niche publications, which address specific local market interests comprising recreation, sports, healthcare, and real estate. In addition, the company's print and online products offer local market news and information that covers various topics, such as local news and politics, community and regional events, youth sports, opinion and editorial pages, local schools, obituaries, weddings, and police reports. Further, it provides advertising services to small businesses, corporations, government agencies, and individuals. The company reaches approximately 14 million people per week and serves approximately 140,000 business customers. New Media Investment Group Inc. was founded in 1997 and is based in New York, New York. |
Please note, this was presented as a pair trade, with Long - Entravision Communications (EVC) being the other side.
Publicly traded companies mentioned herein: Entravision Communications Corporation (EVC), Fortress Investment Group LLC (FIG), Newcastle Investment Corp (NCT), New Media Investment Group Inc (NEWM)
Highlights
The presenter is long shares of Entravision Communications (EVC), the largest Hispanic TV broadcaster, and short New Media Investment Group (NEWM), the largest owner of smaller market newspapers in the US. Fortress-owned NEWM has been growing via small tuck-in acquisitions and the presenter expressed concern about the sustainability of comps. He was previously long this "old media" company, and was consistently surprised that its same store revenue would come in up 1% - 2%, when "all of the other newspaper players were reporting mid single digit or high single digit revenue declines".
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