This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

13 Small-Caps Crushing Analysts' Views

Stocks in this article: RAILJRNRRGB

Journal Communications

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

The sad and steady demise at newspaper publishers has been a key investment theme for half a decade. Many venerable publishers have tumbled into bankruptcy or into the arms of rivals, and a few hearty enterprises still stand.

Count Journal Communications (JRN) among the survivors. Though its stock fell from $20 back in 2004 to below $1 in early 2009, the company has subsequently stopped the bleeding. Shares have moved back to the $5 mark, and could head higher still.

Journal Communications publishes the Milwaukee Journal-Sentinel and a host of niche publications that target ad-driven niche segments. The company also operates 33 radio stations and 13 TV stations, and it's the broadcasting divisions that are saving the day. Journal Communications recently topped profit forecasts thanks to robust ad spending on the TV and radio stations -- a trend that should continue as the U.S. economy rebounds.

>>5 Earnings Stocks Poised to Pop

An emphasis on cost-cutting at the publishing division has stopped the bleeding there, which has boosted company-wide results. EBITDA plunged to -$66 million in 2008, rebounded to $10 million in 2009, and has averaged around $18 million in each of the last two years.

Meanwhile, total debt has been steadily shrinking, falling from $280 million in 2005 to a recent $42 million. The relatively stronger financial shape has led management to spend some of the company's cash flow in areas where the print, broadcast and online properties can better leverage off of each other. The recent better-than-expected earnings report may be a harbinger of even better days ahead.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs