Are newspaper the new railroad stocks? Normally, with a question like that, I'd assume it's just another newspaper industry doom and gloom story.
AOL "Blogging Stocks" blog doesn't quite draw that map.
Zac Bissonnette notes that railroad stocks have performed better than other transportation stocks the S&P 500 because their prices had been beaten down so low.
The moral of the story: valuation matters. Most stocks are a good deal at the right price.
I think this is certainly one of the reasons why private investor groups are interested in some Big City papers. It goes beyond ego (which is a factor) and to the point that at a distressed sales price, newspapers can provide wonderful returns.
He draws some comparisons between mature and declining newspapers and mature and declining raolroads.
But its also true that Internet sotocks are remininscent of the early days of railroads stocks, an industry that built a number of fortunmes. As a fortune builder, the same could be said of the golden age of newpspering. A question: Will a new set of owners find a fortune in beaten down out-of-favor newspaper stocks?