There has been some improvements in the stock values of publishing companies in the U.S. in the past year, according to a story in Folio:. For instance:
- Time-Warner, parent of Time Inc., hit $31.89 on Tuesday, up from a low of $20.71.
- Martha Stewart Living Omnimedia was $5.41, up nearly 100% from its low of $1.88
- Meredith Corp. was $35.05, 98% up from its 52-week low of $17.70
- Playboy Enterprises was $3.79, up nearly 100% from its low a year ago of $1.88
According to Reed Phillips, managing partner at DeSilva + Phillips, another reason for stock price gains among publishers is a significant reduction in cost restructures among them. “Some of these same companies that saw sharp declines in their stock prices during the recession have significantly reduced their cost structures and are in a good position to share strong returns as advertising revenues rebound,” he says. “Investors are anticipating much better operating results from media companies.”
In Canada, publicly held parent firms of the large magazine publishing companies have seen similar, but less dramatic, surges.
- Rogers Communications on Tuesday was $36.87, compared with its 52-week low of $28.40
- Quebecor Inc. was at $36.89, compared with $14.93
- Transcontinental Inc. was $14.16, compared with $5.95
Labels: magazine business