|Written by GSCR Staff|
|Wednesday, 29 July 2015 05:43|
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!
Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.
It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.
This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.
ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
For more information, visit our Disclaimer: www.goldmanresearch.com