Tribune

**teenvestor2** Mon Feb 13, 2006 5:42 pm

Tribune
Blast what do you think of this?

Here are some bullets:

- Low PE, P/S , P/CF, P/Book and high dividend yield as compared to competitors
- operating margin 20% ROE ~9%
- Tweedy Browne, Bob olstein, Bruce Sherman and Brian Rodgers paid ~$36 for stock currently at $30.75
- D/E .4, current ratio only .7, but close to peers, debt reduced 1 billion since 2000
- Google and other internet companies have picked up a lot of ad revenue that used to go to newsaper when this mania ends Tribune should benefit
- Morningstart puts inrtinsc value at $55, 78% above current price
- 2.5% dividend yield is 40% higher than S&P and 150% over competitors

So Whatdya think?

-Mike

**blast_investor** Mon Feb 13, 2006 9:53 pm

Hi Mike,

This stock TRB is fine growth stock, though not my type of stock.

But this is clearly a Warren Buffet type of consumer monopoly stock. Warren Buffet is investing in Washing Post, this is Chicago Tribune. The PE is not very high, but not very low either.

The problem I have with this is the threat from Internet. Newspaper business is longer as monopoly as before. Craig List and Google, and Yahoo cut into the profit of big newspapers. Further more, the valuation is not really a dirt cheap. They are fairly valued and the business is in down turn.

All newspaper stocks are not in good shape. They are all dropping. But they have not entered my radar yet.

**teenvestor2** Mon Feb 13, 2006 11:15 pm

I'm interested in how you found the fair value of Tribune...

They are undervalued as compared to peers.

-Mike

**blast_investor** Mon Feb 13, 2006 11:24 pm

You can read my Newsletter Investing strategy here:

http://www.blastinvest.com/article/BIRTP_Ann05.htm

The reason that I am not interested in this stock type is spelled out in the investing themes.

teenvestor2 wrote: I'm interested in how you found the fair value of Tribune...

They are undervalued as compared to peers.

-Mike