Thursday, April 20, 2006

Over 25% of NYT Shareholders Give Thumbs Down

The New York Times reports that over 25% of those foolish enough to still be holding NYT Class A shares withheld their votes for board members at yesterday's shareholder meeting.

Hint to those still owning NYT common: Sell

The NYT article linked has a very nice graphic supporting the advice given above. The NYT lost 47% of its value in the past two years and shows no sign of arresting the rate of descent. There is no evidence that the Ochs/Sulzberger families have lost faith in the lackwitted family scion whose incompetency and demonstrated lack of judgement is destroying the trademark so bailing out before impact seems a very reasonable suggestion.

Sedition must remain its own reward.

UPDATE: - If the Ochs-Sulzberger families get rid of Pinch within the next year the stock is a buy. Under lucid management the company is worth at leat what it was two years ago.


flenser said...

Shareholders revolt?

Knucklehead said...

The poor, seditionist dears! I'm bleeding for them.

Rick Ballard said...

Morgan Stanley Investment Research (from Flenser's link) appears to have taken a $150M haircut over the past two years. One might wonder why they keep holding on. T. Rowe Price has almost double their exposure and Fidelity about half.

None of the big boys have rushed the exit yet. If one of them bails we'll find out where the real floor is. My bet is around 20.

Knucklehead said...

Any idea how widely held NYT stock is? Maybe there's nobody to bail it to 'cause the only folks holding it are wealthy seditionists and big institutions.

Unless something is done, however, it will be poor children who suffer the most:

Harlem School Kids to Inherit NY Times Empire

(2002-11-22) -- Inspired by columnist Paul Krugman's criticism of America's inherited wealth and status system, New York Times publisher Arthur Ochs Sulzberger, Jr., today altered his legal will. His share of the vast Times empire and fortune will now be inherited by the senior class of a Harlem, NY, high school.

"I read Paul's column," said Mr. Sulzberger, "and I agreed that my offspring shouldn't inherit my wealth, and the reins of the Times, just because they had the dumb luck to be born in my family. What about all those other kids who weren't fortunate enough to have me as their father?"

Under the terms of the new will, after Mr. Sulzberger's death, his share of the New York Times Company will belong to the Harlem high school's current senior class collectively, and the class president will be the publisher.

According to Mr. Krugman, all children from wealthy families who rise to positions of power or influence do so only because of the social status of their parents, not due to their own abilities, nor to the skills they learned from their parents.

The New York Times has been run by members of Mr. Sulzberger's family since 1896.