WAN-IFRA

Shaping the Future of the Newspaper

Date

Fri - 25.05.2012


Number of U.S. newspaper analysts dropped

Number of U.S. newspaper analysts dropped

In light of the falling market value of U.S. newspaper publishers and the decrease in investors interest, ranks of newspaper stock analysts seem to have diminished in number, Reuters reported.

In 2006, over two-dozen analysts were available, whereas today it is barely half of that. Firms like Prudential, Citigroup, Morgan Stanley and UBS trimmed the number of employed analysts, as large research departments become more expensive to upkeep and financial market revenue plunged.

"The fewer analysts you have, the less information that's distributed, the less appearance there is in the minds of institutional investors and so it diminishes the industry as a whole," John Morton, a newspaper analyst who operates his own research firm, said.

If the ranks are not refilled, then “decades of intelligence and critical thinking” may be lost, according to Reuters.

“Analysts help investors go beyond the general perception and provide deeper reports on factors affecting individual companies,” Reuters reported.

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Author

Alisa Zykova

Date

2008-07-09 02:07

Shaping the Future of the Newspaper


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