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The Wall Street Transcript Publishes Special Newspaper/Publishing Issue

Five leading analysts and top management from two publishing firms examine the newspaper/publishing sector in the latest issue of The Wall Street Transcript (212/952-7433) or http://www.twst.com/info40.htm

In a vital review of this sector for investors and industry professionals, this valuable 46-page special report features:

1) Newspaper/Publishing -- In an in-depth Analyst Roundtable (13,600 words) Douglas Arthur, Managing Director with Morgan Stanley Dean Witter, Lauren Rich Fine, First Vice President/Managing Director with Merrill Lynch, Kevin Gruneich, Senior Managing Director and Publishing/Information Analyst at Bear, Stearns & Company, and Mary Ann Winter, Media Analyst and Consultant examine the surge in national newspaper advertising by the dot com's, the Internet's impact, dual class ownership, EBITDA valuations, local TV station results, broadcasting operations, ties to retail sector, classified ad revenues, online ventures, tracking stocks, pricing & circulation strategies, consolidation, newsprint costs, risk factors, the outlook for the sector and the expert panelists disclose their specific stock recommendations.

Publishing companies are at crucial juncture, with investors focused on evaluating and trying to differentiate which business models will succeed and the make-up of the sector following M&A activity and the blurring of who falls into the publishing sector in the wake of the Internet.

According to Gruneich, ``On the information side we've been very high on a small cap name recently called Bell & Howell (NYSE: BHW). Again, it's just under 1 billion in market cap, but we have a 43-44 price target on it. Another company where there has been recent massive change that will persist into 2000 is Dun & Bradstreet (NYSE: DNB). PRIMEDIA (NYSE: PRM) also stands out. Last fall, it made an inspired choice of Tom Rogers, a key leader for NBC's cable and new media business.''

Gruneich predicts ``On the magazine side, and it's probably not fair to isolate this company as a magazine company, we just upgraded to a buy rating Martha Stewart Living Omnimedia, (NYSE: MSO) a relatively new name to the public markets. We find this a very interesting company that is going to have a much heightened Internet presence. This pullback that we've seen in MSO is an excellent buying opportunity.''

Winter explains ``I do like the Washington Post Company (NYSE: WPO). I know it's a tough sale for institutional clients, but I like their diversification. I think the ad trends at the Washington Post newspaper are starting to pick up, and a major capital spending program to upgrade printing facilities is behind the company. Despite the small number of shares outstanding, the Washington Post is a buy in my estimation''

Arthur highlights, ``Reader's Digest (NYSE: RDA), which we were very aggressive on early in 1999. It had a good move and then had a big correction. The stock has now consolidated. We're very positive on near-term earnings. We think there will be a number of upside surprises. And I think that stock is catching its breath and is ready for another big move on the upside.''

Winter talks about the newspaper stock performance in 1999 ``Well, as far as the performances are concerned, in my view, there has been one standout performer in the diversified group, and that was Tribune Company (NYSE: TRB). Another thought regarding the strong performance of Tribune relates to Time Warner (NYSE: TWX). I think Tribune could have been a possible acquisition candidate for Time Warner because of Tribune's television station ownership and equity position in the WB Network.''

According to Arthur, ``There are certain management teams in the group that have been very aggressive and very outspoken about their concern of the Internet and the implications for their print-based businesses. In turn, certain managements have been very proactive. I would include Dow Jones (NYSE: DJ), Knight-Ridder (NYSE: KRI) and The New York Times (NYSE: NYT) at the top of my list.''

The panel offers recommendations about which sector stocks are most likely to reward different types of investors.

This Special 46-page Newspaper/Publishing Issue also includes:

2) Newspaper Stocks -- In an in-depth TWST Analyst Interview (5,100 words) with William Drewry, Vice President and Equity Analyst at Donaldson, Lufkin & Jenrette, he examines online ventures, classified advertising, tracking stocks, circulation strategies, USA Today's success, newsprint costs, labor issues, valuation concerns, the outlook for the sector and offers specific stock recommendations.

3) The TWST confidential Off-The-Record survey of management performance at 15 Publishing firms asked market insiders about the ability of management teams to create shareholder value and manage challenges posed by the advent of the Internet.

Firms reviewed in Off-The-Record include:

Dow Jones, E.W. Scripps, Gannett, Harcourt General, Houghton Mifflin, John Wiley & Sons, Knight-Ridder, The McGraw-Hill Companies, Meredith Corporation, The New York Times Company, Primedia, The Reader's Digest, Scholastic Corporation, The Times Mirror Company and Tribune Company.

4) Two extensive (average 3,000 words) CEO Interviews with top management from the following sector firms discussing their future plans and outlook for their firm and the Publishing sector:

Douglas H. McCorkindale, President of Gannett Co, Inc.
Dr. Klaus Oesch, CEO of Orell Fuessli Holding AG.

To obtain a copy of this issue order online or call (212) 952-7433. This special section is also included in the CONSUMER Sector of TWST Online. For info, go to CONSUMER - INFO & SUBSCRIBE

The Wall Street Transcript is a premier weekly investment publication interviewing market professionals for serious investors for over 36 years.

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The Wall Street Transcript does not endorse the views of any interviewee nor does it make stock recommendations.

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