Some of the most widely traded public companies are in the media business. There are dozens of firms in the sector. Many were started within the last few years, notably Google, Yahoo!, Sirius, and China powerhouse Baidu. Many stocks in this category have gone up 50% to 100% in the last year. Others, especially in the newspaper industry, have lost over 50% of their market caps.
It is this volatility that makes these stocks potentially valuable to investors who look at markets shorter term.
Old media has taken a beating, with a few exceptions. Newspaper stocks like The New York Times and Gannett not found new ways to replace the revenue which they are losing to the internet. The major media powerhouses including Disney, News Corp, Viacom, and CBS have been wrestling as much of their core audiences moving to the internet.
And, the market for IPOs in the industry is heating up. Large, private companies like Facebook are considering going public. M&A activity is white hot as well with with Microsoft trying to buy Yahoo! and CBS recently buying CNET.
Amidst all of this radical change, there are a number of opportunities for investors as companies in the industry trade sharply up and down in relatively brief periods.
Since the beginning of the year, Google has dropped from $685 to $413 and is now back up to $560.
Media companies are moving into mobile alliances with telecom companies, distributing their best content free on the internet, and struggling against falling interest in print and TV.
The 24/7 Wall St. Old Media/New Media Stock Letter is written to help investors sort through the complex world of global media and look for the companies that are likely to do exceedingly well, or fail as trends overwhelm them.
The newsletter comes out each week. The insights are different from what you will find anywhere else.
At the current price, for about $3 a week, investors can have analysis of a sector that continues to be a significant part of the most active part of Wall St.
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