FXJ

[younga]

Old Fairfax has had a bit of a rise in the last couple of weeks. Just wondering if something is in the wind - another possible takeover? Does anyone know when the new media laws gets passed.

[Flying Goat]

quote:Originally posted by younga

Old Fairfax has had a bit of a rise in the last couple of weeks. Just wondering if something is in the wind - another possible takeover? Does anyone know when the new media laws gets passed.

Hi Younga

The big jump ocurred when Rupert Murdoch purchased a >7% stake in the company a week or two ago, off market but at a price significantl above market - unfortunately just about one month after I sold off all my FXJ Other than that its just the usual frenzy that goes on in a sector that is being shaken up, check out APN for example, Tony Oreilly has alreay moved on that one... Not sure about the detail on the laws, I thought they were all but passed already [?] but might wrong.

My personal opinion on Fairfax is that it has a lot of strong media brands and the diamond that is Trademe in the stable, but I was NOT very enthusiastic about the debt level so took the conservative route and quit while ahead. In saying that, like any media company the cash flows are SUPER STRONG and I guess that is how they manage to carry a lot of debt in a not-too-dangerous way.

Cheers
FG

[BRICKS]

FXJ is in an interesting position the share price is at an all time low is a good DIV
payer and if you buy/read "THE DIMMINION" well this is your STOCK..

[POSSUM THE CAT]

BRICKS is this the imaginery newspaper that you get all your share imformation from? THE DIMMINION"

[BRICKS]

BRICKS is this the [imaginery] newspaper that you get all your share [imformation] from? THE DIMMINION"

SORRY DOMINION soon to be in BRICKS portfolio so can you afford SOME..

PS. check your spelling to.

[bear]

Fairfax's problem is its growth areas are very limited to internet related businesses such as Trade Me.

The traditional forms of print media are all struggling with negligible growth, higher costs and a reduction is advertising and margins - the strike also didn't help - all round a marginal business model. For Fairfax this marginal aspect of the business is a huge component and drags on the overall prospects.

Prior to the profit result a few months back i researched extensively and after speaking with a few Aussie mates decided at the time it was not for me. As it pans out the price and market has dropped more and div improved.

If you want a price plodder and just in for the divi it's probably ok but growth is not likely unless things change dramatically

bear

[BRICKS]

Chairman statement.

With over 300 mastheads [papers] across Australia, New Zealand and the United States, more than 50 major websites, and 15 radio stations, we are the largest content generators in Australasia.

Our content reaches over 10 million people each week in Australia and New Zealand.

Sounds Good to me..

[macduffy]

I'd try to look past sheer size here.

GM and Ford are two of the biggest carmakers still but I wouldn't be buying their shares!

[bear]

Chairman statement.

With over 300 mastheads [papers] across Australia, New Zealand and the United States, more than 50 major websites, and 15 radio stations, we are the largest content generators in Australasia.

Our content reaches over 10 million people each week in Australia and New Zealand.

Sounds Good to me..

Look further than what they are and look at sales, advertising revenue, profit, margins, costs, and future prospects - you will find it marginal at best

when advertising revenue increases, and circulations increase it could be a time to buy - but i think there are far better opportunities out there.

Bear

[POSSUM THE CAT]

Bricks Would not touch with A barge Pole Just try getting into any of there web sites. Also I average 20 emails a day from Fairfax trying to sell me something. When I was in Australia they cancelled my AFR subscription when they had row with local news agent. Could not get another newsagent 1km away to take over delivery or have a prepaid copy held at his premises for me to pick up. Has deteriated ever since David Kirk took over management.