Citigroup cuts NYT to "sell" rating

Citigroup has downgraded the New York Times Company to a "sell" rating from "hold",  according to Marketwatch. "Even though two secular forces should be helping the industry -- older demographics and slowing broadband adoption -- the actual circulation trends are getting worse," Citigroup said. "The only conclusion we can draw from this data is that the pace of Internet substitution is accelerating so fast, it's overwhelming two positive underlying trends."Readers of American Thinker were warned years ago of the serious decline in the company, and the inability of hereditary leader Pinch Sulzberger to correct the situation. Marketwatch notes that the two-tier shareholding system, which enables the Sulzberger family to name a majority of the board of directors despite owning less than 10% of the shares, is another factor in Citigroup's downgrade of the stock.The New York Times Company is becoming as disrespected on Wall Street as it is...(Read Full Post)