Newspaper Stocks Are Value Traps
Their steep share price declines don't make them bargains.
The paroxysmal changes rattling the beleaguered newspaper industry have coincided with unprecedented declines in publishing companies' stock prices. The decimation has affected newspaper publishers regardless of size, geography, or prestige of their mastheads. Driving this decline is a structural shift of epochal dimensions that is fundamentally changing the way we generate, compile, disseminate, and consume news and information, manifested largely by the rise of the Internet and the proliferation of alternative digital media choices.
Tom Corbett does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.