Singapore Press Holdings 01 (May 08 - Nov 11)

[bluechipstamp]

I used to consume my daily news from the papers, but no longer. There's a growing trend that the younger ones are consuming more data online, and less from the papers. IMHO, it's not a matter of IF, but more a matter of WHEN newspapers will become irrelevant.

SPH knows this, and has been buying up all the local websites with significant traffic (hardwarezone, shareinvestor etc...). She's also trying to create her own "singapore google" (rednano.sg), "singapore craiglist" (st701.com), "singapore ebay" (mocha?)... These efforts are based on a monkey-see-monkey-adopt strategy, which is seriously uninspiring. They need to do better to remain relevant.

It's true that the printed paper offers a much higher resolution than the screen, and is thus easier on the eyes. However, with the advent of eBook readers (eg. Amazon's Kindle) which use "e-Ink", this problem will go away.

[kennynah]

knowing full well how to run a printed media and that of an online media are two very different animals altogether...

it would be foolish to imagine that purchasing online businesses will lead to continued success of their printed media business.. try they should... but until they succeed, i wont bank on it.

[b0rderc0llie]

It's true that the printed paper offers a much higher resolution than the screen, and is thus easier on the eyes. However, with the advent of eBook readers (eg. Amazon's Kindle) which use "e-Ink", this problem will go away.

I like the feel of touching a physical book, turning the pages and reading from it. However, I would like to try out the eBook readers you mentioned. I am in Florida USA now, and I'll go look for it, if it is available for sale in the retail shops.

[memphisb]

i used to think that way with all the replies from above ever since its at $2.80.

Look at its price now. Lets not forget uncles and aunties are buying wanbao and other chinese newpapers for gossips and 4 d results, shall we?

[winston]

Not vested.

SPH’s FY09 results were in line.

Final plus special DPS of 18 Scents were above consensus’ and our expectations, bringing
full year DPS to 25 Scents, which gives a yield of 6.4%. Drop in ad revenue (-17% yoy) was offset by property and lower staff costs. DBS Research expects continued ad revenue improvement inline with economic recovery.

Maintain Buy, TP: S$ 4.22 (Prev S$ 4.21). SPH’s yield of over 6% and its improving operational performance is an attractive investment thesis.

Source: DBSV

[winston]

Not vested. B0rderc0llie, this one is for you ...

From UOBKH:-

Valuation/Recommendation

Advertising revenue growth remains the key share price catalyst. SPH’s current share price setback is temporary. The bigger picture of advertising recovery remains intact. The Straits Times’ Saturday paper gets thicker in November as evidenced in our page-counts, suggesting there is no pause in advertising spending recovery.

Share price is cum FY09’s final dividend of 18 cents and will become ex-dividend on 9 December. Our target price of S$4.40 implies a 23% upside on the ex-dividend share price of S$3.59. Annual yield is forecast at 6-7%

[kennynah]

it is amazing that UOBKH appears to be able to tell where SPH share price is heading towards and can even confidently suggest that the recent price weakness is mere temporal setback...

they are god.... or are they so vested in SPH... just wondering...

[winston]

SINGAPORE PRESS HOLDINGS - Singapore Press Holdings, which has near monopoly on newspaper publishing in the city state, will restore 50 percent of the pay cut introduced in April this year and give a special one-off payment to staff.

Source: Reuters

[financecaptain]

Soon it may come to SPH.
Its management is not capable to ride the new world.
Its shares may become extinct too.


Major layoffs at 2 papers

WASHINGTON - THE Washington Times will lay off at least 40 per cent of its 370 employees as part of a major overhaul announced on Wednesday by the financially troubled paper.

In a statement, Washington Times president and publisher Jonathan Slevin said the cuts were part of a strategy to transform the paper from its traditional business model into a 21st century media company. 'We have developed plans to secure our position and advance our vital role in an evolving media marketplace and through challenging economic times,' he said.

Acknowledging the tough times being experienced in the media industry and economy as a whole, Mr Slevin said future plans had to be constrained by 'current marketplace realities.' 'In this regard, the company is aggressively working to achieve efficiencies of scale that must include significant staff reduction of its 370 personnel.'

In a story on its website, the Washington Times said all employees were handed letters advising them that at least 40 per cent of the workforce will be laid off in the coming weeks. The announcement also included a new circulation model under which the paper - owned by Reverend Sun Myung Moon's Unification Church - will be distributed for free to 'targeted audiences in the branches of the federal government as well as at other key institutions.'

Home or office delivery will be available at a 'premium price' while single-copy sales at newspaper boxes and retailers will continue unchanged.

Also on Wednesday, The Miami Herald said it was eliminating 24 posts worldwide and reducing some newspaper production working hours in a bid to survive the economic crisis. 'The move is part of our ongoing effort to ride out this unprecedented period of economic turmoil,' publisher David Landsberg wrote in an e-mail to staff. 'While we are seeing some signs of improvement on the horizon, we expect operating conditions to remain challenging through much of 2010.' -- AFP

[winston]

Not vested. From UOBKH:-

Recommendation

The big picture of an AR recovery remains intact. SPH’s share price, cum FY09’s final dividend of 18 cents, will go ex-dividend on 9 December.

Our target price of S$4.40 implies a 23% upside on the ex-dividend share price of S$3.59. Annual yield is forecast at 6-7%.