New York Times November Advertising Revenue Falls
New York Times
just reported that its advertising revenue dropped 20.9% in November from a year ago.
This increases the trend from two months earlier, where the newspaper company showed declines of 16.2% in October and 14.1% in September. Ad revenue accounts for over 60% of the overall revenues.
Internet revenue decreased 2.6% despite the company having the 10th largest presence on the Web, with 55 million unique visitors in the U.S. in November 2008 according to Nielsen Online, up about 11% from 49.6 million unique visitors in November 2007.
We had removed shares of New York Times from our "Recommended" list on July 9, when shares traded at $14.01. We had previously included the shares on our list when we started coverage in early June, when the stock was at $16.82. The company recently cut its dividend and now has a 3.79% dividend yield, based on last night's closing stock price of $6.33. The shares are trading near all-time historic lows at this time. If the shares can ever muster a sustained rally, we see the $9.50 to $10 area as an area of overhead resistance.
New York Times is not recommended at this time, holding a Dividend.com Rating of 2.7 out of 5 stars.
Starbucks Pulling the Plug on 401(K) Matching?
has reportedly told employees it may not be able to match their contributions to 401(K) retirement accounts next year as the company attempts to keep costs down.
The current plan matches between 25% and 150% of the first 4% of workers' pay. Management had recently announced the closing of nearly 600 underperforming stores in the U.S. and about 60 locations in Australia.
Shares of Starbucks have technical support in the mid $7 range, which would take it back to September 2001 levels. If that doesn't hold, then the high $5 range cannot be ruled out. If the shares can stabilize at these levels, any upturn may run into overhead resistance in the $13-to-$14 price area. Despite not paying a dividend, we are keeping tabs on the company because it is a well-known brand to investors. Could there be a
like turnaround for this coffee company? We'll keep you posted as we monitor the progress.
Starbucks does not currently pay a dividend.
Navistar International Restating Results
just announced it will be restating its financial results for the nine months ended July 31.
The company is saying the restatement relates to overstatement of costs of products sold and the understatement of inventories and accounts payable in Navistar's Truck segment.
The company did reaffirm its 2008 profit outlook of $6.35 a share to $7.45 a share. The consensus is for a profit of $6.71 a share.
The commercial truck and diesel engine manufacturer has had a rough year with shares down over 60% this year. The news out this morning will not help matters. The stock has downside risk to the $9 to $13 price area. If shares can firm up here, the overhead resistance would be around the $30 to $32. We would look elsewhere for better investment opportunities.
Navistar International does not currently pay a dividend.
Lockheed Martin Wins Army Contract, Makes Acquisition
just announced it has agreed to buy Universal Systems & Technology, which provides training and simulations for U.S. and international government agencies.
This announcement comes on the heels of the company receiving contracts totaling $774 million from the U.S. Army Aviation and Missile Command for hardware and services for the next generation of the Patriot Missile.
We had removed shares of Lockheed from our "Recommended" list on Oct. 7, when the stock traded at $102.62. The company has a 2.91% dividend yield, based on last night's closing stock price of $78.28. The stock has long-term technical support in the $60 to $62 price area. If that fails to hold, we may see $46 as the next level on the downside. If the shares could consolidate a bit, any move up would face overhead resistance in the $81 to $86 area. We would look elsewhere for a better investment opportunity at this time.
Lockheed Martin is not recommended at this time, holding a Dividend.com Rating of 3.3 out of 5 stars.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.