# NWS - News Corporation



## markrmau (5 May 2005)

Like it or hate it, NWS had a huge reversal today.

I think it will be up >10% within a few days. (dont hold)


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## Investor (5 May 2005)

*Re: NWS - newscorp*

There is one fundamental weakness with this company, IMO.

The CEO is not getting any younger.   

Management succession is a huge issue. 

Also, media has been riding the long bull run. Economic conditions going forward, will not be as accommodating, by my reckoning.

Financial analysis of this company is probably harder than most people admit to.

I do not and will not hold.


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## brisvegas (27 September 2005)

*NWS*

NWS in my buy zone around these levels, any opinions out there about this one? Looking at US chart nudging TL support, looking for swing pivot here with stop under TL supp. 


.................. Pete

US NWS chart


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## MARKETWAVES (28 September 2005)

*Re: NWS - newscorp*

Its  good  to  see  talk  about  an  American  Equity....

  Here  is  my  view  of  the  situation  .....
 I  dont  want    to   see  anyone  get  hurt out there  ....


 Looking  a  little  bit  longer  term   ...  These  charts  look  bearish  ... 

 Is anyone  familiar  with  Symetrical  Triangles  ?   


Well,  this  is a  massive  one  .....  
STARTING  TO  LOOK  LIKE  A  BREAK  OUT... ( LONG  TERM ) .....



ONLY  AN   OBSERVATION  ......

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*TRADE AT YOUR OWN RISK*… The purpose of these charts is to point out significant highs and lows based on Fibonacci Retracement lines and Elliott Waves which are highly subjective . This information is for educational purposes and should not be considered trading recommendations . All trading decisions are your own sole responsibility …


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## brisvegas (28 September 2005)

*Re: NWS - newscorp*



			
				MARKETWAVES said:
			
		

> Its  good  to  see  talk  about  an  American  Equity....
> 
> Here  is  my  view  of  the  situation  .....
> I  dont  want    to   see  anyone  get  hurt out there  ....
> ...




bearish ?? cant see it. TL supp low risk entry imo

get hurt ?? dont worry about me, stop losses prevent major equity meltdown.

as far as charting NWS over such a time frame i would be looking at ASX NWS charts as for most of your time period was predominanatly ASX traded stock as such with ASX leading US ADR price . lot of the major swings in SP were influenced to a degree by FX alterations rather than US sentiment 

US indice included only recently so effectively only US price action led in recent history

appreciate comments and diversified view


....................... Pete

will post asx NWS chart shortly



if you overlay SPX chart you will see NWS.N basically follows SPX variations so in effect you seem to be bearish on US indice ????


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## brisvegas (30 September 2005)

*Re: NWS - Newscorp*

Looking promising so far. AUD strength not going to help asx NWS much but with a dollar retrace it should kick along


........................... Pete


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## brisvegas (2 October 2005)

*Re: NWS - Newscorp*

Developing nicely at this stage


............. Pete


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## brisvegas (5 October 2005)

*Re: NWS - Newscorp*

NWS back to long term  TL supp in quicktime. tonight should be pivotal


................. Pete


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## MARKETWAVES (13 October 2005)

*Re: NWS - Newscorp*

This  is  what  I  was  trying  to  explain  pete  .....

  The  larger time  frame always  more  important  than  the  smaller  time  frame  .....   the  last  charts  to  look  at  should  always  be  daily  or  intraday  charts ...

I  am  telling  all  this to people  and  traders  in  all  my  travels....
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*This stock broke support and it broke it hard......*

hope you were saved by your protective stop...  it's good to talk to a trader  that understands the importance of using them....

Moving  on  ....
I would like to POINT OUT a Stock that is doing the exact opposite of  NWS technically speaking that is ...  It also is making a symetrical triangle  .... but is breaking to the upside ...  the Stock by the way is *AMZN*....  
Take a look down below ...

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*TRADE AT YOUR OWN RISK*… The purpose of these charts is to point out significant highs and lows based on Fibonacci Retracement lines and Elliott Waves which are highly subjective . This information is for educational purposes and should not be considered trading recommendations . All trading decisions are your own sole responsibility …


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## RichKid (20 May 2006)

Newscorp may be back on the XJO index so more fund managers would have to buy in: http://www.theaustralian.news.com.au/story/0,20867,19194280-643,00.html


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## wayneL (20 May 2006)

Shoot, Rich!

It's actually showing some nice swing tradeable waves. It's obvious I have ignored it for too long.

Could my nemesis make it back onto my watchlist?

...my heart is beating real fast at the thought


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## clowboy (9 September 2006)

There use to be a way of finding the listing price of a stock but I can't remember how if my life depended on it.  I am trying to find the original issue price for news, not the one a few years back when it merged or whatever.

Any help would be apreciated


thanx


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## ducati916 (9 September 2006)

Current Price $19.25
Code NWS-A
Yield 0.6%
Market Capitalization $77289.0
TCI Price Target $0.00
Investment Sector Entertainment Diversified
Price/Earnings Ratio 28.9
Recommendation Avoid


INDUSTRY STATISTICS

Market Capitalization:	243B
Price / Earnings:	18.0
Price / Book:	-36.2
Net Profit Margin 	10.3%
Price To Free Cash Flow 	121.5
Return on Equity:	9.0%
Total Debt / Equity:	0.4
Dividend Yield:	1.3%


The Industry is not for the faint of heart. Earnings and profitability are fleeting. The return on equity is low, and does not adequately compensate above the returns available on debt. The business is capital intensive, with low returns on capital and with very low profit margins.
If, the securities were cheap, on a bargain basis, then possibly a candidate may be located. Currently this is not the case with the average P/E ratio at 18.

CAPITALIZATION

Market Cap 	60.72B
Enterprise Value 	66.60B
Trailing P/E 	28.90
Forward P/E 	18.69
PEG Ratio (5 yr expected):	1.11
Price/Sales 	2.45
Price/Book 	2.13
Enterprise Value/Revenue 	2.70
Enterprise Value/EBITDA 	12.064


Capitalization structure is a very important component within the story of NWS-A & NWS.
The above figures representing Enterprise value are inaccurate. They are inaccurate for the reason that they do not take into account the “Off Balance Sheet” Operating Leases. These Operating Leases add some $5859.0 million to the effective debt. This is “potentially” a severe problem. The earnings are extremely volatile, and fluctuate wildly. Without a consistent margin above Interest on debt + Operating Leases, bankruptcy proceedings could be initiated by the “minority” bondholders.

How possible or likely is this?
It has happened once in the last five years, and been close on one other occasion.
Did the bondholders trigger bankruptcy? No, but they technically could have.

The second far more serious problem with the Capitalization resides within the Common stock itself.
There are two classes of Common stock; Class A and Class B.
Class A common stock represents the original common stock.
Class B common stock represents the converted Preferred Stock. This was converted on a 1 for 2 basis and was designed as a “Poison Pill” defense against NWS being acquired. Only Class B has voting rights, and thus control resides in one class of common stock that is held by Mr. Murdoch.

Therefore NWS is only going to be controlled by this one “unaccountable” owner. There will be no method by which the control of the company and its policies can be influenced by the other owners.

Holding NWS is therefore an examination of management and the strategies of management.
Have they been profitable and in the minority owners best interests?

INCOME STATEMENT

Profit Margin 	8.84%
Operating Margin 	15.59%
Return on Assets 	5.25%
Return on Equity 	9.65%

From the two margins we can ascertain that this business is just not that profitable. The Profit margin and Return on Equity are the two margins that flow to the Class-A common stock. They are poor. On aggregate the Profit Margin is 3.3%. This is not a profitable business.

Return on assets seemingly is high. This is very misleading.
The Return on Assets returns some $4.60 on investment. If we look at a different industry to get some perspective of what is possible, looking at OFIX the Return on Assets is $16.48. OFIX is also an “acquirer” of assets. The message being that you can buy high return assets that directly flow to the bottom line or you can buy low return assets. NWS tends to buy very low return assets.

The reason for such low profitability lies in the very high Costs associated with the business. Some 82% of gross revenues are consumed within the costs. Are there any discretionary cash-flows within the cost structure that are hidden, providing the margin of safety of redirecting them in time of need? Not at all, the Costs contain nothing that can be salvaged. This suggests poor negotiating on contracts with providers of content, be that the various sports bodies [NFL, NHL, etc] 

The only discretionary cash-flows identified were found within Capital Expenditures. These amounted to $55.4 million or $0.01 per share.


BALANCE SHEET

Total Cash 	5.32B
Total Cash Per Share 	1.688
Total Debt 	11.43B
Total Debt/Equity 	0.401
Current Ratio 	1.866
Book Value Per Share 	9.021


Immediately there are problems that are highly visible that must call into question the advisability of NWS as an investment grade common stock.
The Current ratio falls below the minimum 2.0 required.
The debt is understated by the amount contracted to the Operating Leases.
The return on Retained Earnings has been 0.00%
This is unacceptable as an investment. It demonstrates unequivocally that the investment decisions under the incumbent management have destroyed shareholder value.  The common stock is a pure speculation.

The Book Value resides in liquidation value only, and as such should be discounted by an appropriate rate as the demonstrated returns fall far below the purchase price paid. It is this either gross underperformance of purchased assets, or, poorly selected assets, combined with the poison pill defense that makes NWS such a dangerous investment.


SUMMARY
What do the Institutions think of NWS?
Well currently not that much.
Only some 10% of the float is owned by the Mutual Funds & Hedge Funds. This for such a large capitalization common stock is a very insignificant holding. I suspect the dual class of common stock is a negative in this age of owner activism. There is no way that value can be unlocked or increased without the management’s compliance.

The calculated Intrinsic Value = $0.00
Liquidation Value is the relevant valuation here, but has not been calculated.
The intricate capitalization structure designed to retain control of the business and thus the allocation of capital could be of benefit with the right management. With the incumbent management and demonstrated returns, it is an unmitigated disaster. I would advise looking elsewhere for an investment.


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## clowboy (9 September 2006)

Ducati,

Thanx for that but I could not find the listing price of NWS amoungst it.

Maybee I should have been more clear.  By listing price I meant issue price, Ie the price the stock floated at the time of listing, for example NAB listed at $1 per share.  I would assume that NWS was similar but I would like an exact price if that is possible.

Thanx


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## marc1 (24 January 2007)

This one doesn't get any air play on this station but it just keeps going up !!!

Hit $31.00 intraday today , Smashed through 2 months of resistance @ $29 ish,

2 weeks ago on very solid volume. Wall st maybe taking a liking to it ???

Great exposure to the usa with out having to leave home.

All good news so long as you didn't buy @$55.00 in the good old tec days , who

knows it may get back there one day.

Holding atm average $22.


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## quarky (27 June 2007)

http://au.biz.yahoo.com/070626/33/1ah2t.html

News Corp. reached an agreement in principle to safeguard the editorial integrity of the Wall Street Journal as part of its hostile takeover bid for Dow Jones, the Journal reported Tuesday.

The thorny issue of the Journal's independence has emerged as a key sticking point in News Corp.'s attempt to takeover Dow Jones for five billion dollars. The Journal is considered to be Dow Jones's most prized asset.

--------


this could see the NWS/NWSLV stock prices get to around AU$30, especially if News Corp. makes an acquisition such as Wall Street Journal.

(and NWS also has Myspace too.  )


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## legs (15 July 2007)

Anyone any interest in this stock? I am considering entering as it looks like good timing? Good support at $27???


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## Ken (11 August 2007)

I am looking at the stock, and the dividend stinks.

Thats the first thing I looked at.

But I think the growth aspects are good.


So goes hand in hand I guess.


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## greenfs (11 September 2007)

A check of the sp graph suggests that this one might be about to take a solid run up in the sp. Does anny1 else have a similar view?


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## vishalt (11 September 2007)

It's a media stock and there's the problem, its only moving because Murdoch is such an agressive CEO. 

I think its looking nice for a short-term run, but accumulation wise is a no-no as the dividend disgusts me.


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## kerosam (11 September 2007)

might retest $27.40 (23rd August high). 

today's volume lower than average. so, maybe, chart might return to fill gap (or has it been filled?).

increment in RSI & flat in OBV.

newbie in reading charts & interpreting indicators. :


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## Ken (21 October 2007)

News Corp.

US dollar is going to really effect their margins.

If Aussie /US dollar comes to parity theres 10% off the bottom line of Newscorps profit.

They are a poor dividend paying stock.

I see know place to be there at present.

Anyone disagree?

Underpeformed the all ords and the capital structure is a concern.


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## vishalt (21 October 2007)

I urge any sensible shareholder NOT to play in newscorp D:, 

5c dividend and it moves so painfully slow, media is NOT a growth sector - in comparison to resources/energy/tech anyway. I work in media, its immensely competitive and profits are just break even or only "decent".


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## Ken (21 October 2007)

Does newscorp have a monoply on the market?

Are they the BHP of media?

How is the dow jones takeover going to go?

They just seem to be gearing up...

I dont hold, they seem to be a stock with a heap of dare we say it.

Potential if the capital structure is unlocked.


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## vishalt (21 October 2007)

There are many powerful media companies. Bloomberg, Reuters, Thompson, News Corp, Fairfax, General Electric's CNBC, Washington Post etc etc. 

News Corp is powerful but its not something that gets attention from big hedge fund managers or speculators, if anything on bad news it will be punished severely. 

Media is just a random waste of time sector, its not aggressive, its not defensive, it doesn't play good dividends, there are so many better stocks to pay attention to.


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## Ken (22 October 2007)

My only thinking is that Myspace.com potentially could be spun out, and add shareholder value that way.

At the rate that myspace is growing, it could be spun out, and be similar to a google, or an ebay....

Just a thought.


Myspace is something that has changed the way people communicate and live, and newscorp owns it...

For me that is interesting.


I would buy shares in myspace if I could. Just my thinking...

I know theres more to newscorp than myspace, but surely the value can be unlocked.


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## waz (31 October 2007)

Thought Id bump this thread, especially with the large movements lately with MSFT, GOOG and faceboook.


Does anyone know how much NWS values Myspace on its books?
The last time I read their reports, which was only a brief skim, I dont think they value myspace on its own. But value it under the general banner of internet, which also includes its other websites both in Aus and abroad.

Even though Myspace has more users, it does not mean that those users are actively using their account, nor do we know how long they are spending on Myspace.

Whereas with facebook, the fewer users (which is growing at a faster rate) spend much more time on there and login on a regular basis. I would have to say that at least a 1/3 of facebook friends use it daily, and like me, a small percentage are logged into it for a few hours a day. I now send/receive more messages on there than what I get useful emails to my gmail account

So in other words, myspace is worth less than facebook, in the future I expect facebook to overtake myspace in every statistic, be it users, active users, page views, traffic, etc...

That said, myspace is still worth a few $bil, and will make up a fair bit of NWS enterprise value. If I had the time id make some calculations. 

Its funny that after the MSFT facebook purchase, and googles phone talk that NWS has traded almost flat for the last 3-4 days.

PS. Googles Orkut social website is no match for facebook. It looks like a early 90's BBS. Instead of a wall you have a scrap. I dont see any facebook users ever wanting to use it. For starters you would have to re-upload your photos, and there is really no need to ever want to use 2 social websites.
Its like releasing a new web mail service to people who already have webmail accounts. The only ever time this was done successfully was with gmail. Thats because they offered 100+ (virtually unlimited) times more account space. Facebook is already unlimited. You cant beat that.


Also if your a first time user to the social web scene. Wouldnt you want to join the service that half your friends are on anyway????

Any other thoughts.


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## Kelpie (14 March 2008)

Interestingly, there is no thread on this yet......

It appears that NWS is just off its all time low of $19.70 back on October 2005. I am a holder and wonder if it is wise to increase my holding now...any suggestions on what I should be looking for before buying?


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## Kelpie (17 April 2008)

Can anyone help me with some T/A on this one. Inparticular, whether it might hold support ~@19.50.? Many thanks.


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## Muschu (15 May 2008)

FNArena reports that there are 9 buy recommends on this stock and nothing below that level.  
I am not a chartist but, from the little I do know, it appears there may be some promise here.  
Anyone more experienced care to comment?
Thanks


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## tulasi74 (16 May 2008)

I do have some info but pls note that this is not my own analysis but quoting from another source.  I have access to Aegis technical newsletter and a couple of weeks back they recommended NWS as a buy with a technical target of at least $23.50. The at least is interesting because any close above the 30 week ma might see the stock break out.  I think 30 week ma is now at 22.70.  

Good luck.

Tulasi


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## Kelpie (3 June 2008)

Hello again, I'd appreciate any technical analysis on this one - it closed @$19.10 and I'm wondering whether it may have broken support. Many thanks, Kelpie.


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## Kelpie (5 June 2008)

After having bounced of support today, just wondering if there may be a tripple bottom forming. Any comments most welcome.


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## tulasi74 (8 June 2008)

Looks like it might be heading for the high $18.00s.  Good news though is that it might close at the bottom bollinger band on weekly charts and bollinger band theory would suggest that it should reverse from there.  However the band is trending lower so it could go the low 18.00s. I am holding and I will hold for a price above $32 which might be 12 - 24 months away.  Please DYOR.


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## Kelpie (9 June 2008)

tulasi74 said:


> Looks like it might be heading for the high $18.00s.  Good news though is that it might close at the bottom bollinger band on weekly charts and bollinger band theory would suggest that it should reverse from there.  However the band is trending lower so it could go the low 18.00s. I am holding and I will hold for a price above $32 which might be 12 - 24 months away.  Please DYOR.




many thanks for your response tulasi. I was wondering if you might elaborate on your fundamental and technical thoughts as to why it might advance to over $30 in a year or two. thanks again.


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## Kelpie (3 July 2008)

seems to have broken support in the US at US$14.98. any ideas when next support might be?? many thanks.


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## tulasi74 (7 August 2008)

I cannot figure this stock out.  Someone on CNBC openly admitted to NWS being one of the hardest companies to value fundamentally.

I loaded up ahead of the report thinking it was oversold more than the worst case scenario would require.

Fundamentally, this company has been trading at very high PEs as its seen as a growth company.  But at current prices it is trading like any other media company.

Huntley's on E-trade are recommending the stock with a price close to $30.00.  I am merely quoting broker valuation and that is a sum of parts valuation.

I think this stock is due to bottom soon.  Another retest of the $14.50 lows and a 20% rise from that price back up to $17.00 and break above that should see a trend reversal.

Good luck Kelpie.  I am holding for 12 - 24 months.  Became an involuntary investor in the stock at the $27.00 mark but have been trading it on the way down but still holding at high cost.

Tulasi


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## Kelpie (8 August 2008)

tulasi74 said:


> I cannot figure this stock out.  Someone on CNBC openly admitted to NWS being one of the hardest companies to value fundamentally.
> 
> I loaded up ahead of the report thinking it was oversold more than the worst case scenario would require.
> 
> ...





many thanks for sharing your insights tulasi.

I got in soon afterwards at ~$25, and have also been trading it on the way down, thinking ....... it's gotta bottom out at any moment!

Kelpie


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## shaunQ (15 November 2008)

So has anyone got any comments on the outlook for this stock - a rebound coming from the recent massive drop or further declines to come?


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## skc (5 August 2010)

NWS released pretty solid results today and the market liked it. Dividend of 75c per share will be paid to both class A and B share. 

Now, does anyone know why NWS and NWSLV should trade at difference price, given that they are receiving the same dividend?

Now I understand that NWSLV is non-voting. For the regular investor this may not be a big deal. For institutions this is probably somewhat important. For Murdoch this is obviously very important. But does that justify a 12% premium?

NWS tends to have better liquidity, but NWSLV are pretty much in tune with it, so it doesn't matter that much unless for short term traders.

Here's a chart of the relationship... NWSLV (Blue line) was actually priced higher than NWS in early 2009. It was only during the last 18 months that a gap has opened up. So some of the theories above may be incorret...

Explainations?


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## notting (26 June 2012)

Google TV, Apple TV growing and developing. Foxtel - Rip off.
This thing is a joke and trades like something with a cult following overpriced for about 30 years with a pathetic dividend.  
Hate it. 
It's managed to hold on to the delusional psychology that ran the markets up into the 2008 peaks.
Think I'll go buy me one of those delicious McDonald's hamburgers.
If a regular fish and chip shop sold you one of those you'd throw it back in the guys face!
Got to hand it them, their great at selling sh#t to idiots.


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## McCoy Pauley (28 June 2012)

Split approved by the News Corp board.  One company will hold the entertainment businesses like 20th Century Fox, the Fox News Channel and the Fox broadcast network.  The other company will hold the print businesses.

http://online.wsj.com/article/SB100...69861262.html?mod=WSJASIA_hpp_LEFTTopWhatNews


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## notting (27 December 2012)

Speaking of turns. 
Does any one know what date the NWS buy back will end?


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## System (19 June 2013)

*NNC - News Corporation*

Shares in New Newscorp Inc (NNC) – News Corp's newspaper and book publishing business – will start trading 19 June on a deferred settlement basis, ahead of the full de-merger of News Corp on 28 June. 

NNC will hold News Corp's publishing interests, including Murdoch's three UK titles, the Sunday Times, the Times and the Sun; his New York papers, the New York Post and the Wall Street Journal; his Australian newspapers and the Australian Fox Sports.


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## System (11 September 2013)

On September 2nd, 2013, News Corporation (NNC) changed its ASX code to NWS.


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## notting (29 November 2013)

This has about as much reason to be inflated as does Murdoch's weener at the moment.  
Insanity on behalf of international insto's.  
Oh I get it!  They must be anticipating lots of advertising from Harvey Norman apartments on stores. 
I'm going to start up an internet company called obituaries.com, to take the last remaining realm of  classifieds out of news papers. Actually no. dead.com has a better catch to it.
:silly:


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## notting (27 March 2014)

> Rupert Murdoch elevated his two sons, Lachlan and James, to senior positions at his
> entertainment and publishing operations, signaling that both are likely to play roles in
> the long-term future of the family-controlled media empire.
> 21st Century Fox Inc. named Lachlan Murdoch, 42 years old, as nonexecutive co-chairman,
> ...




Oh Joy.
This is going to be so much fun to watch.

*Crush it.*


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## skc (27 March 2014)

notting said:


> Oh Joy.
> This is going to be so much fun to watch.
> 
> *Crush it.*




Lachlan is awesome, says the AFR.



> Lachlan Murdoch’s toughness made him an easy choice




http://www.afr.com/p/business/companies/lachlan_murdoch_toughness_made_him_YiTmjL6VhtTSRsd6MC8Q4I

And AFR is owned by Fairfax!

Or may be it's just a backhanded compliment... "toughness" is all they could say.


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## banco (27 March 2014)

Lachlan is the Freddie Corleone of the Murdoch family.  Unfortunately  for them they don't have a Micheal Corleone.


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## Trav. (8 February 2020)

NWS came up on my scan and I have never traded it before so I am having a look at the chart (Daily) and amazed at how gappy it is, so I checked out the price sensitive announcements and the last half dozen announcements don't match up too the gaps so not sure of the catalyst here.

Closing in on ATH of $22.62 but some resistance prior to that. 

Interesting chart so I will have to ponder a bit over the weekend to find some sort of pattern.

- looking strong trend wise
- good volume
- ticks all boxes but those gaps !!! 

*Anyone have a view that they would like to share ?????*


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## cropcos (9 February 2020)

Trav. said:


> NWS came up on my scan and I have never traded it before so I am having a look at the chart (Daily) and amazed at how gappy it is, so I checked out the price sensitive announcements and the last half dozen announcements don't match up too the gaps so not sure of the catalyst here.
> 
> Closing in on ATH of $22.62 but some resistance prior to that.
> 
> ...




In terms of the gappy price behaviour you tend to see that in asx listed CDI’s such as this, where the main stock is traded on a foreign exchange. NWS is listed on NYSE. Look at AQG or RMD for example.


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## Trav. (9 February 2020)

@cropcos thanks for that, makes sense now.

Cheers


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## Garpal Gumnut (5 February 2022)

Some of the rival mastheads to News here and in the USA are reporting that the Chinese government have been hacking their sites  





__





						News Corp says it was hacked, journalists targeted, attack could have come from China
					






					amp.smh.com.au
				




Since 2020 at least.

gg


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