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FXJ - Fairfax Media

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tulasi74

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I own a lot of shares in fairfax and notice that the SP has been going down despite a good report in Feb. Does anyone know why its going down?
 
some reasons........

2 years ago during the media takeover frenzy they were seen as the most likely takeover target, and so the SP surged accordingly. once these rumours dried up the SP has slowly dropped. and then the market downturn, and expectant drop in advertising, plus the growing use of internet ads, has seen many abandon newspapers as an investment.

also consider that with the high A$, no takeover is likely from overseas, and of course, funding for any such takeover is impossible presently.

i sold out at $4.80 about 12 months ago.

they remain a sound business, but i will be waiting a bit longer for re-entry.
 
yes... it was pushed heavily by the major brokers last year as potential takeover target on the back of changes in the media environment
 
Charlie Aitken is recommending this one as deep contrarian value. Yielding over 7%...
is a sound business operating against only 1 real competitor
 
yielding over 7% on last years divs. i fear what they will be this year. like most companies, i see them hanging on to divs this year, just so they have some cash handy. yields may well plummet as companies hold that cash.

as for fxj, they have hit the level they had their big cap raising for the NZ media buy up.

and their 1 real competitor - i assume you mean www.
 
tulasi74 said:
I own a lot of shares in fairfax and notice that the SP has been going down despite a good report in Feb. Does anyone know why its going down?
Click to expand...

One reason is that its two main mastheads, the Age and the SMH are losing circulation rapidly because their journalists are a crowd of no hope lefties who couldn't get a job in a union free publication. They publish socialist drivel for the latte set who now use the internet rather than buying a newspaper and they have pissed off traditional working readers who now buy newspapers published by News Ltd.

gg
 

Here's a scary thought. We are going to have 500 virtually unemployable Fairfax newspaper hacks on the market. Perhaps all the leftist politicians these people have been propping up for years will double their numbers of media advisers.
 
In my area "northern beaches Sydney" it is very difficult to buy a newspaper (SMH) at the news agencies Saturday & Sunday lately "before 8.30am" they don`t have any, spoke to one of my neighbors who gets it delivered, today he got his paper very late, I was wondering if any of you has experienced something similar, think it maybe because of the layoff earlier this year?
 
The changes at fairfax continued today with the ceo resigning????? or was he pushed one day after the editor of the sydney morning herald wa s axed.. the directors are obviously unjappy with the sp and so they should
 
Does anyone know why this one is on a down trend the past couple weeks?
Anything to do with their debt levels? or the sale of southern star?
 
dan-o said:
Does anyone know why this one is on a down trend the past couple weeks?
Anything to do with their debt levels? or the sale of southern star?
Click to expand...

Yeah they were a sitting duck and rightly so. They operate in an industry with crappy dimensions and have a **** load of debt. They've added the debt in return for the nothing really, no value adding acq. at all. Fairfax has had no strategy for the past 10 years and now it's catching up to them.

Everyone is going online and they've not going to make any money there off readers. Look how much of a failure AFR online has been regarding paid subscribers. People won't pay for something when they can get it somewhere else for free. Assets of $8b with intangibles of $6b doesn't look good when you're $2b in debt.Scary stuff really, they've gone under before and I wouldn't be surprised if they do again with the right set of circumstanced.
 

I agree, management are just our of their depth and have been for a long while, the print ads were covering their tracks but now thats faltering it could be all over rover.
Apart from printing a newspaper they really are very ordinary with everything else.
Watch Ron Walker run for cover when it does hit the fan.
 
Waiting for the rights-issue results to come in..... FXJ is so slow on the releases to market that it is not funny.

I had some when previously working for RUP - employee exempt share scheme.

Had an average of about $4.80 until the stock really started plumbing the depths - bought more at $1.36 and $1.13 to cost average, Currently have it at $3.16.

Applied for another $1400 worth in the rights issue, will bring the average cost down to $1.80ish if I get them all.

Unfortunately I have not been in the market for long, or I would have sold them ages ago and gotten a reasonable price for them. They were transferred to my Commsec account in November 08 by which time their value was crap and I wasn't going to sell them.
 
They'll come good. Picked up a small slice of these at $1e. Media sector is somewhat behind the rest of the market rally at the moment I think.
 
I 've often wonderd why are there always so many Fairfax shares traded in any one day ? the company is a basket case, even Buffett rang the bell on printed media the other day.
 
They'll come good.
Click to expand...

But what happens if it doesn't? Fairfax is a debt-laden piece of crap in an industry that is falling to pieces. I doubt we have seen the worst in advertising drop offs as well due to the economy. I would hate to be in this as a "long-term investment".

W.
 
Yeah print world is tough these days.
Everything going online.
Add to that ad market recession ... a severe one too.

Journo's get paid too much with their unions and all, and digital media economics are far superior to print ... lot's of flux and uncertainty.
 
Fairfax has now merged print with online so thats the writing on the wall, too bad they're not as good online as they are with print, if it were the other way around they might be ok but afraid not.
 
MrBurns said:
Fairfax has now merged print with online so thats the writing on the wall, too bad they're not as good online as they are with print, if it were the other way around they might be ok but afraid not.
Click to expand...

yeah but to cross the "bridge" from print to online is not so straightforward ... different culture and processes required.

e.g. in the print world the way you negotiate ad contracts is to have ad managers and bus-development people go out and negotiate ... whereas online it's about clicks and links and automating the ad partner network process ... all metrics are measured differently ... thus requires a different skillset. Add to that there are heaps of online activities that are totally foreign to the print world; social networking, viral marketing, twitter etc ...
 
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