The E.W. Scripps Company (NYSE:SSP)
A diverse media concern with interests in national television networks, newspaper publishing, broadcast television, interactive media and licensing and syndication. All of its media businesses provide content and advertising services via the Internet.
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SSP has a too high valuation compared to its sales potential. It is also loss making at least until 2010.
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With the split of the company coming soon, it will only make them stronger on their cable television endeavors. HGTV and the Food Network are very strong brands.
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Diversification with media in television, print and content and advertising services via the internet will make this investment worthy.
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Diversification is the name of the game. Scripps does this better than any other media company. They are conservatively managed, have a knack for developing top rated cable shows and their newspapers are second to none. By them now before you are sorry.
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Newspapers are a dying industry plus there loosing there butts doing buisness with Dean Singelton and the JOA,s he has created in Denver over 150 mil in new presses.
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This stock meets my criteria for a long-term buy: great management and a good price.
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They run one of my favorite channels FINE or FineLiving. Shows are informative and high quality productions given in 30min. segments.
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Owns Food Network, which is popular and cheap to produce. Put another way, Mario Batali probably couldn't afford his lavish lifestyle on FoodTV paycheck alone.
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I just can't help but feel that this company is falling prey to the same dangers afflicting other media businesses. Granted, it's more diversified than, say, MNI or NYT, but I'm not at all sure it will escape the newspaper revenue decline. And that could, at least in the shorter term, be its downfall.
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