|Written by GSCR Staff|
|Wednesday, 29 July 2015 06:43|
Alright, today’s tagline was only to get your attention as possibly some rant against political media bias or some other hot topic from Washington.
In truth, today’s highlight is a new and old media play that appears to be headed back up.
The chart below illustrates the one year performance for New Media Investment Group, Inc. (NYSE – NEWM - $16.58) and the roller coaster ride the stock has been on.
NEWM 1-Year Chart
On a quick glance, the chart above indicates that NEWM may have met a bottom in an approximate head and shoulders pattern. Also on the technical side, a short float under 5% is a positive indication for the longs.
New Media Investment Group 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.
The Company continues deal flow to ensure it meets or exceeds revenue targets. For example, a month ago New Media entered a new affiliation with Direct Eats, an online specialty, gourmet and naturals foods marketplace redefining how consumers find and purchase food. In addition to providing consumers with access to specialty foods based on their personal taste or diet, all of the products are shipped for free. New Media will provide Direct Eats with advertising across all of its local markets in exchange for a 12.5% equity stake in Direct Eats. Consensus estimates are for about a 75% increased in revenue for the firm in 2015 and 2016 over 2014, going from approximately $650 million to $1.1 to $1.2 billion.
Tomorrow the Company reports 2Q15 financial results. Good news could mean a short term pop. We like a stock price of $21 by the end of 3Q15 for NEWM.
Have a great day!
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