This column was originally published on RealMoney on Oct. 19 at 12:09 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.
There's a way out for media, there's a model, and the model is
. I urge you to read the
press release on its blowout quarter today. It has a mosaic of businesses that include publishing that are, quite simply, awesome.
The star this quarter, obviously was ratings, specifically everything that Standard & Poor's rates. S&P is like a research department for a brokerage ... without any competition. It is a unique product with a great brand. That
never cracked this market shows me that those companies are still deeply mired in the same old, same old.
But media wasn't bad, either. The publications, as my friend Steve Adler said the other day in the
discretionary. In each case, in each industry they write on, or in Steve's
, you still are dealing with must-reads. All I could say when I read this quarter from McGraw was, "What kind of number could it have done if it was doing well in textbooks?"
Most media companies these days should just be labors of love. If I were Dow Jones or
New York Times
, I would just go 501(c)3 -- that is, become a nonprofit -- and hope for the best, maybe go for a fundraiser of major foundations to fund their living trusts of
The Wall Street Journal
. Those aren't businesses anymore, they are foundations that are ad-supported. You want stock in PBS? Sold to
Now, though we have a winner in the category, McGraw-Hill. It joins
in the auto space and
in the telco space as a core holding for its group.
What an impressive company.
At the time of publication, Cramer had no positions in the stocks mentioned.
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