Yesterday's big lead story in the New York Times (NYSE: NYT) questioning Republican presidential hopeful John McCain's ethics surrounding his relationship with a female lobbyist, was nothing more than a political hit job and not only did it backfire as McCain is raising money off this story but also sent shares of the Times' stock slipping more than 6%.
The Times stopped long ago being the paper that coined the phrase "all the news that's fit to print." The paper has turned into a mouthpiece of the far left wing in not just domestic but also foreign politics. Yesterday's article was a rehashed story from years ago that has been denied by everyone involved. How the editors of this story could have even published it is shocking.
On the other hand, the paper is desperate. The readership of the paper has been in a steady decline and so have company profits. The newspaper business has consistently lost readers to online editions on the internet as well as alternative media like talk radio, with hosts such as Rush Limbaugh drawing millions of listeners a day, and bloggers. They provide timely up to the minute news and analysis, something newspapers are by definition, unable to do.
With its stock down about 30% from its 52-week high, and more than 60% off from levels seen five years ago (significantly under-performing the S&P 500), the paper must feel that they have to be as sensational as possible to try and sell a few more papers.
Long ago I stopped reading the New York Times, and investors may want to focus on more interesting growth stories in more interesting spaces.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned as of 2/22/08.
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Reader Comments (Page 1 of 1)
2-22-2008 @ 11:01AM
Chilla said...
It has been appearent to all informed readers for some time that the NYT has become irrelevant and is largely ignored. This "story" is just a desperate act to regain relevence. It's no surprise that it backfired.
2-22-2008 @ 11:11AM
Dennis said...
His whole campaign is run by lobbyist people.
2-22-2008 @ 11:58AM
David Huston said...
The NY Times is truly one of the few good newspapers in the land. The gist of the article was both the Keating debacle and McCain's dance with lobbyists. The only unaddressed question is, to which Mrs. McCain was the Senator married when the most recent l'affair de lobbyist took place?
2-22-2008 @ 12:25PM
Rebel said...
Some words of wisdom to anyone who 'dares' to read a newspaper or watch the evening news: Believe absolutely none of what you hear and only half of what you see! Learn to read between the lines and think about not only the story but also the intent of the one's who are trying to tell you that story. Learn to think for yourself and stop letting other people do your thinking for you! Remember that truth does not lie in opinion, wishful thinking or political correctness. Truth is based on facts and only facts!!
2-22-2008 @ 2:44PM
NYSlimes said...
Their new slogan is "All the News that Fits Our Views". They are winning the competition with The New Republic and CBS for bad fact-checking and most infamous discredited reporters.
2-22-2008 @ 2:37PM
Kent said...
I was a daily subscriber to NYT for years and it was one of the main sources of information I used when I was in college writing term papers. Professors at that time said they would not recognize sources retrieved from "Time", "Newsweek" and "U.S. News & World Report" because they were suspect. This was way back in the 60's. I wonder if the NYT is added to the list today, if in fact a no-no list still exist at insitutions of higher learning.