By: Mark Fitzgerald
Newspaper stocks tumbled Tuesday, outpacing a down Dow. While that index closed off 1.1% on a 112-point drop, Lee Enterprises (LEE) and The McClatchy Co. (MNI) both fell more than 10% — and other stocks weren’t far behind.
This was no mad rush out of the sector. Volumes were uniformly near-normal. It seemed simply more proof that the sector rally is finished and that investors aren’t looking at newspapers as dirt cheap anymore — even as their price falls.
LEE fell 10.3% on a 35-cent decline to $3.05. MNI was also down 10.3% as it shaved 50 cents from its open to close at $4.34.
Media General (MEG) was off 9.1% on a fall of $1.16 a share to $11.61. E.W. Scripps (SSP) was down 8.3% on the day, declining 73 cents to $8.10.
Bellwether Gannett Co. (GCI) closed down $1, or 6.4%, at $14.54.