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|| SportsShooter.com: Member Message Board
Food for Thought:Now is the time to buy the local paper back
Michael Fischer, Photographer
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Spencer | Ia | USA | Posted: 11:31 PM on 07.19.09 |
->> The thread I started the other day, on how a former owner of two newspapers/shopper bought his properties back, was inspirational - but it wasn't entirely unexpected.
If you go back into the SportsShooter archives, you'll see where I wrote that the next buyers of newspapers would be the ones that would make money in the business.
My friend Gene's repurchase proves that prediction is accurate.
Why now?
Well, as I wrote to another member on here, one of the earliest rules I learned in business was "to buy straw hats in the winter". That is - you buy things you think will sell when they are out of favor. Gatehouse, the company that owned the properties Gene bought back, is selling at something like 17 cents a share. It's generally believed, as Gene's column points out, that the industry is dead.
That, my non business friends, is when you BUY. Gene didn't tell me what he paid, but I know my friend - and he is like me - and you - whether it's a camera body or a car or newspaper - everyone likes to buy value.
There aren't too many people that want to buy newspapers right now so any offer, backed up by the right financing - will get some attention. Corporate America wants to bail out - it just needs someone to make a offer.
As Gene so accurately pointed out, the corporate pencil necked accounting geeks have ruined the model.
A smart business person, that knows the business, and knows marketing, could make some serious money.
Why am I telling a bunch of shooters this? If this wake up call can work it's way up to the right people - whether it's a editor, or a publisher who is tired of the BS and still cares about the business; NOW is the time to make your move.
What's ruined the newspaper business is stupidity and greed. The good news is, with the right people in the right places, doing the right things, papers can do well again.
The secret of business is to give people more than they pay for. Newspapers CAN attract younger readers. They can't do it unless the papers make the investment to attract them.
It's winter time. Time to buy some straw hats.
Michael |
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Chris Stanfield, Photographer, Photo Editor
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Atlanta | GA | USA | Posted: 8:56 AM on 07.20.09 |
| ->> Tempus est optimus iudex |
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David A. Cantor, Photographer, Photo Editor
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Toledo | OH | USA | Posted: 9:13 AM on 07.20.09 |
->> “Money is a terrible master but an excellent servant”
P.T. Barnum |
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Karl Stolleis, Photo Editor, Photographer
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Santa Fe | NM | | Posted: 10:54 AM on 07.20.09 |
->> Michael,
In the final days of Enron the stock was trading at less than a dollar a share, down from well over 100 bucks. That didnt make it a bargain. |
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Chris Stanfield, Photographer, Photo Editor
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Atlanta | GA | USA | Posted: 11:30 AM on 07.20.09 |
->> "The secret of business is to give people more than they pay for."
No, it isn't. It's to make money. Otherwise, it's just a hobby. At this point, I'd settle for my hometown newspaper to give me AT LEAST what I've paid for. Right now, that's a stretch.
There has never been anything wrong with a 10% profit margin and most family owned newspapers - after all bills are paid - would be happy to have it. Sadly, there aren't enough family owned newspaper companies anymore. |
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Alex Witkowicz, Photographer
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Denver | Co | USA | Posted: 11:33 AM on 07.20.09 |
| ->> "There's a great future in plastics." |
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Wesley R. Bush, Photographer
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Nashville | TN | U.S. | Posted: 12:02 PM on 07.20.09 |
| ->> My niece's travel soccer team won a NATIONAL tournament yesterday. I emailed the sports editor telling them about her team qualifying for the tournament beforehand to see if they would be interested in at least mentioning it. I didn't get a reply. It wasn't in the paper. Now this group of local girls is going to play in a world soccer tournament with no mention from the paper in the town where all of them grew up. Talk about a disconnect between the paper and its readers. |
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Mark Loundy, Photo Editor
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San Jose | CA | USA | Posted: 2:09 PM on 07.20.09 |
->> Wesley,
Get on the telephone and call the publisher.
--Mark |
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Michael Fischer, Photographer
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Spencer | Ia | USA | Posted: 7:58 PM on 07.20.09 |
->> If you take care of the customer, the profits will take care of themselves.
It's that simple. Doesn't mean you don't manage for profit - you have to. But without customers, it's no newsflash - you'll have no profit.
M |
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