The Chicago Sun-Times Media Group (SUTM) has become the latest newspaper to file for bankruptcy. It’s looking pretty grim for the newspaper industry. Just recently, we’ve seen the Chicago Tribune, the Los Angeles Times and the Baltimore Sun all file for bankruptcy protection.
The Rocky Mountain News was also recently shut down. The Seattle Post-Intelligencer is now web only. There have also been major job cuts at the Houston Chronicle and the Atlanta Journal-Constitution.
I don’t see things improving in the near-term. The problems for the papers are twofold. More advertisers are turning to places like Google (GOOG) or Craig’s List. Also, advertising is down across the board due to the weaker economy.
How do the other major papers rate? I currently rate the New York Times (NYT), Gannett (GCI), the Washington Post (WPO) and E. W. Scripps (SSP) as sells. All of them. Steer clear of any newspaper stocks.
Google (GOOG), however, is a good buy.