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Casual Articles - An Analysis of Journal Communications (JRN)
Website masters have a ton of responsibility to maintain their website and the subsequent links to it. Primarily, they have to figure it if they prefer to have access to all of the websites on their company server or if they prefer not to. When a webmaster has root access, he can virtually control anything stored on his server. This means he can access security information, user groups, and any file on the server. One might wonder why a webmaster wouldn't want this access. Read on for the benefits and drawbacks to having root access.When a webmaster opts to use a virtual private server hosting service, he's choosing the less expensive option. He doesn't have the hassle of maintaining a server at his home or having to access a remote server from his computer. Additionally, his site is much more protected from the threat of hackers, and the server owners will make the server more reliable. Additionally, virtual private hosting services come with easy to use browsers.So who really needs this kind of control though? Who should have access to everything on a server? Those who have this access must know how to maintain their website. You should understand basic software apps in addition to browsers. And if you want root access, you should have a successful business that sees plenty of hits on a daily basis or a business site that has several employees working on it.As stated above, the virtual private hosting plans are less expensive, but they still cost a bundle. A webmaster will pay around $100 to $150 a month for such a service. Additionally, he'll pay a given fee to purchase the web hosting pl
Some stocks, like Google (GOOG), trade at prices that allow for catastrophic losses of considerable magnitude. Other stocks, like Journal Communications, trade at prices that only allow for very small losses to principal. However, there is also the matter of probability. How likely is it that a Google shareholder will suffer a catastrophic loss? I don’t know. I’m not even willing to hazard a guess.
In the case of Journal Communications, I am willing to stick my neck out.
I believe an investment in JRN carries a very low risk to principal – considerably less than, say, an investment in the S&P 500. Why? Because Journal Communications is trading at a very modest owner’s earnings multiple. But, that isn’t the only reason. You shouldn’t look at Journal solely from a going concern perspectiv
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Journal Communications has an enterprise value of just under $1 billion. Pre-tax owner’s earnings are probably around $125 million. So, JRN trades at eight times pre-tax owner’s earnings. That’s cheap.
Journal’s effective tax rate is 40%. That is an unusually high rate. Journal’s media properties would likely generate more after-tax income under different ownership. The difference would be material; but, for anyone other than a highly leveraged buyer, tax savings would not be a primary consideration. When evaluating Journal as a going concern, it is perfectly appropriate to treat the full 40% tax burden as a reality. These taxes reduce owner’s earnings by $50 million.
With after-tax owner’s earnings of $75 million and an enterprise value of $1 billion, Journal’s owner’s earnings yield is 7.5%. Remember, this is the after-tax yield. The pre-tax yield is 12.5%. When evaluating a company, it’s best to use the pre-tax yield for purposes of comparison. Last I checked, the 30 – year Treasury bond was yielding 4.63%. So, looking at JRN’s current earnings alone, the stock appears to offer a large margin of safety.
This is especially true if you consider the fact that earnings yields offer more protection against inflation than bond yields. They don’t offer perfect protection. But, with stocks, there is at least the possibility that nominal cash flows will increase along with inflation. The cash flows generated by bonds are fixed in nominal terms, and therefore offer no protection against inflation.
When evaluating a long-term investment, such as a stock, I do not use a discount rate of less than 8%. This reduces JRN’s margin of safety considerably. Instead of being the difference between 12.5% and 4.63%, Journal’s margin of safety is the difference between 12.5% and 8%. Is such a margin of safety sufficient? Maybe.
When evaluating a prospective investment, I first look at the risk of a catastrophic loss. What is the magnitude? And what is the probability? For my purposes, a catastrophic loss is defined as any permanent loss of principal. The risk that I’ve overvalued a business is always greater than my risk of catastrophic loss, because I insist upon a margin of safety. A catastrophic loss is one that wipes out the entire margin of safety.
I can make a bad investment without suffering a catastrophic loss. For instance, most mutual funds are bad investments, because they underperform alternatives. However, mutual funds do not usually carry a high risk of catastrophic loss. In fact, they generally have a low risk of catastrophic loss, because they are highly correlated to the overall market.
It’s easiest to understand this concept if you think of valuing companies as being a lot like writing insurance. Even if reality exceeds your expectations in nine out of every ten cases, a terrible misjudgment in the tenth case can cause you great harm. It isn’t just how many mistake you make. It’s also how big they are.
Some stocks, like Google (GOOG), trade at prices that allow for catastrophic losses of considerable magnitude. Other stocks, like Journal Communications, trade at prices that only allow for very small losses to principal. However, there is also the matter of probability. How likely is it that a Google shareholder will suffer a catastrophic loss? I don’t know. I’m not even willing to hazard a guess.
In the case of Journal Communications, I am willing to stick my neck out.
I believe an investment in JRN carries a very low risk to principal – considerably less than, say, an investment in the S&P 500. Why? Because Journal Communications is trading at a very modest owner’s earnings multiple. But, that isn’t the only reason. You shouldn’t look at Journal solely from a going concern perspectiv
The truth about Affiliate Project X - its flaws, its failings...and whether it really can catapult you to financial freedom. Warning: read before you waste your money...More hoopla and hype blazes through cyberspace announcing the imminent arrival of yet another "next big thing". What is it this time? Something called Affiliate Project X.Yawn. You see, as a veteran internet marketer I probably read ten or fifteen sales letters *a day*, and normally I just hit the back button. I've seen it all and heard it all before. The truth is, late on Monday night (October 3rd), I felt too tired to cast a jaundiced eye over yet another infoproduct.If you're anything like me you've probably bought endless ebooks telling you how you too can become a super affiliate, earning huge amounts of cash selling other peoples' products. Unfortunately, while most of the advice offered by these internet marketing gurus is generally sound, they will never tell you their most innermost and most profitable secrets. Why? Because they don't want you cutting into their profit margins.So, I didn't take much notice of the pre-launch announcements for Affilite Project X. If seemed just another in a long line of "secrets revealed" products...But I was on someone's list, and the announcement that Affiliate Project X was now live dropped into my mailbox just as I was about to shut down my PC for the night. Something about the email address and the subject line drew my attention.This mail wasn't from one of the general lists I'm subscribed to, but from the author of Adwords Miracle, an ebook I'd bought earlier
Journal’s effective tax rate is 40%. That is an unusually high rate. Journal’s media properties would likely generate more after-tax income under different ownership. The difference would be material; but, for anyone other than a highly leveraged buyer, tax savings would not be a primary consideration. When evaluating Journal as a going concern, it is perfectly appropriate to treat the full 40% tax burden as a reality. These taxes reduce owner’s earnings by $50 million.
With after-tax owner’s earnings of $75 million and an enterprise value of $1 billion, Journal’s owner’s earnings yield is 7.5%. Remember, this is the after-tax yield. The pre-tax yield is 12.5%. When evaluating a company, it’s best to use the pre-tax yield for purposes of comparison. Last I checked, the 30 – year Treasury bond was yielding 4.63%. So, looking at JRN’s current earnings alone, the stock appears to offer a large margin of safety.
This is especially true if you consider the fact that earnings yields offer more protection against inflation than bond yields. They don’t offer perfect protection. But, with stocks, there is at least the possibility that nominal cash flows will increase along with inflation. The cash flows generated by bonds are fixed in nominal terms, and therefore offer no protection against inflation.
When evaluating a long-term investment, such as a stock, I do not use a discount rate of less than 8%. This reduces JRN’s margin of safety considerably. Instead of being the difference between 12.5% and 4.63%, Journal’s margin of safety is the difference between 12.5% and 8%. Is such a margin of safety sufficient? Maybe.
When evaluating a prospective investment, I first look at the risk of a catastrophic loss. What is the magnitude? And what is the probability? For my purposes, a catastrophic loss is defined as any permanent loss of principal. The risk that I’ve overvalued a business is always greater than my risk of catastrophic loss, because I insist upon a margin of safety. A catastrophic loss is one that wipes out the entire margin of safety.
I can make a bad investment without suffering a catastrophic loss. For instance, most mutual funds are bad investments, because they underperform alternatives. However, mutual funds do not usually carry a high risk of catastrophic loss. In fact, they generally have a low risk of catastrophic loss, because they are highly correlated to the overall market.
It’s easiest to understand this concept if you think of valuing companies as being a lot like writing insurance. Even if reality exceeds your expectations in nine out of every ten cases, a terrible misjudgment in the tenth case can cause you great harm. It isn’t just how many mistake you make. It’s also how big they are.
Some stocks, like Google (GOOG), trade at prices that allow for catastrophic losses of considerable magnitude. Other stocks, like Journal Communications, trade at prices that only allow for very small losses to principal. However, there is also the matter of probability. How likely is it that a Google shareholder will suffer a catastrophic loss? I don’t know. I’m not even willing to hazard a guess.
In the case of Journal Communications, I am willing to stick my neck out.
I believe an investment in JRN carries a very low risk to principal – considerably less than, say, an investment in the S&P 500. Why? Because Journal Communications is trading at a very modest owner’s earnings multiple. But, that isn’t the only reason. You shouldn’t look at Journal solely from a going concern perspectiv
The Content GameThe success or failure of an online enterprise in today’s world is largely determined by the content of it’s website. When the search engine results formula were initially made public it became clear that the biggest concerns to getting websites ranked well were the number of links pointing to the website as well as the on-page keyword density within the website itself. These are both important factors and the number of links still contribute the majority of the weight as far as search engine rankings go. But now the actual page content matters as well.In order to be successful in today’s internet world, it is important for a website to have original content. Websites that use duplicate content that is already in existence on the internet today are websites that are going to be ranked in the supplemental results of search engines and effectively be removed from the first page of the results in the future. Links and conventional search engine optimization are still important, but now original web content that is regularly updated is also up there in terms of importance to SERPs.The Importance of Unique ContentA distinction needs to be made between web content and unique web content. Content that is unique is what is required in today’s competitive internet world. Duplicate web content, regardless of quality, will be flagged by the search engines and ultimately hurt the ranking of your website. Ergo, not just any content, but original web content that is unique and informative is required in order to play the search engine game. T
This is especially true if you consider the fact that earnings yields offer more protection against inflation than bond yields. They don’t offer perfect protection. But, with stocks, there is at least the possibility that nominal cash flows will increase along with inflation. The cash flows generated by bonds are fixed in nominal terms, and therefore offer no protection against inflation.
When evaluating a long-term investment, such as a stock, I do not use a discount rate of less than 8%. This reduces JRN’s margin of safety considerably. Instead of being the difference between 12.5% and 4.63%, Journal’s margin of safety is the difference between 12.5% and 8%. Is such a margin of safety sufficient? Maybe.
When evaluating a prospective investment, I first look at the risk of a catastrophic loss. What is the magnitude? And what is the probability? For my purposes, a catastrophic loss is defined as any permanent loss of principal. The risk that I’ve overvalued a business is always greater than my risk of catastrophic loss, because I insist upon a margin of safety. A catastrophic loss is one that wipes out the entire margin of safety.
I can make a bad investment without suffering a catastrophic loss. For instance, most mutual funds are bad investments, because they underperform alternatives. However, mutual funds do not usually carry a high risk of catastrophic loss. In fact, they generally have a low risk of catastrophic loss, because they are highly correlated to the overall market.
It’s easiest to understand this concept if you think of valuing companies as being a lot like writing insurance. Even if reality exceeds your expectations in nine out of every ten cases, a terrible misjudgment in the tenth case can cause you great harm. It isn’t just how many mistake you make. It’s also how big they are.
Some stocks, like Google (GOOG), trade at prices that allow for catastrophic losses of considerable magnitude. Other stocks, like Journal Communications, trade at prices that only allow for very small losses to principal. However, there is also the matter of probability. How likely is it that a Google shareholder will suffer a catastrophic loss? I don’t know. I’m not even willing to hazard a guess.
In the case of Journal Communications, I am willing to stick my neck out.
I believe an investment in JRN carries a very low risk to principal – considerably less than, say, an investment in the S&P 500. Why? Because Journal Communications is trading at a very modest owner’s earnings multiple. But, that isn’t the only reason. You shouldn’t look at Journal solely from a going concern perspectiv
Well we've all been there! Or at least I know I have. I joined my first affiliate program about 18 months ago and thought "this is it!" - I confidently expected the cash to start rolling in within hours.Why the confidence. Well I'd just signed up with one of the top 10 affiliate programs (according to its promotional page!) and had also signed up with Google Adwords - so all I'd done was put up an ad and a few keywords. How easy was that? And now I just needed to wait for the avalanche of customers clicking on my ad and sending my affiliate sales counter into meltdown.Ummmmmm.....It didn't work.What?I couldn't believe it. I had the expected stampede of "customers" but no sales. It was my Google Ads cost that went into meltdown! I was dumbfounded. What had gone wrong? Perhaps this whole thing about making money online with affiliate programs was a load of hyped up rubbish anyway. Yes that must be it. I knew it was too good to be true. Huh. To think I'd fallen for that.But somehow I had this nagging feeling - it should work. Why didn't it? It seems so logical. Put up an advert to attract people who want to buy a product they are already looking for. I must be able to do that!So for some reason, even though I'd started disastrously, I jumped into my "learning phase". Something by the way I never got out of. I was and still am a knowledge junkie. I devoured e Books and websites written by people who seemed to know what they were doing. And you know what? There's more to this than joining a top 10 affiliate program and putting an advert up.Actually you can defin
I can make a bad investment without suffering a catastrophic loss. For instance, most mutual funds are bad investments, because they underperform alternatives. However, mutual funds do not usually carry a high risk of catastrophic loss. In fact, they generally have a low risk of catastrophic loss, because they are highly correlated to the overall market.
It’s easiest to understand this concept if you think of valuing companies as being a lot like writing insurance. Even if reality exceeds your expectations in nine out of every ten cases, a terrible misjudgment in the tenth case can cause you great harm. It isn’t just how many mistake you make. It’s also how big they are.
Some stocks, like Google (GOOG), trade at prices that allow for catastrophic losses of considerable magnitude. Other stocks, like Journal Communications, trade at prices that only allow for very small losses to principal. However, there is also the matter of probability. How likely is it that a Google shareholder will suffer a catastrophic loss? I don’t know. I’m not even willing to hazard a guess.
In the case of Journal Communications, I am willing to stick my neck out.
I believe an investment in JRN carries a very low risk to principal – considerably less than, say, an investment in the S&P 500. Why? Because Journal Communications is trading at a very modest owner’s earnings multiple. But, that isn’t the only reason. You shouldn’t look at Journal solely from a going concern perspectiv
To wright your own business success story, you must really work hard to accomplish this venture that you embarked on. Are you doing it the right way? This article will trigger your excitement to make money on the Internet despite all the obstacles that you will encounter on your path of success.Do you want your own home business? Are you scared? Do you think you will lose your money? Do you think all home business fail?If you answer is yes to any of these questions you are right, but there are exceptions.There are thousands of people that want to start their own particular work from home business. They dream about it and it always will stay a dream. The dream never becomes a reality and success is in the distance.Believe me there are many work from home business success stories.If you are motivated, determined and you can persevere a home business can be the business for you. To find the appropriate work from home business opportunity you do not have to look further than the internet.There are entrepreneur’s that have successfully started their own home businesses. They will be more than willing to share their experiences with you.To find them go to any search engine and type in “work from home business.” This will give you plenty of food for thought. There you will get all the motivation that you require to also start your own particular type of home business.Subscribe to any forum on the internet. Do a posting. How did you become a home business entrepreneur? It will not take long to read there responses. You will read stories that you can write a boo
Some stocks, like Google (GOOG), trade at prices that allow for catastrophic losses of considerable magnitude. Other stocks, like Journal Communications, trade at prices that only allow for very small losses to principal. However, there is also the matter of probability. How likely is it that a Google shareholder will suffer a catastrophic loss? I don’t know. I’m not even willing to hazard a guess.
In the case of Journal Communications, I am willing to stick my neck out.
I believe an investment in JRN carries a very low risk to principal – considerably less than, say, an investment in the S&P 500. Why? Because Journal Communications is trading at a very modest owner’s earnings multiple. But, that isn’t the only reason. You shouldn’t look at Journal solely from a going concern perspective. JRN mainly consists of readily saleable properties. The assets backing shares JRN are quite substantial:
Publishing
The Milwaukee Journal Sentinel: Milwaukee’s only major daily and Sunday newspaper. The Sunday edition has the highest penetration rate (72%) of any Sunday newspaper in the top 50 U.S. markets. The daily edition has the third highest penetration rate (49%) of any daily newspaper in the top 50 U.S. markets. The paper has a daily circulation of 240,000 and a Sunday circulation of 425,000.
The Milwaukee Journal Sentinel also operates three websites. JSOnline.com and OnWisconsin.com generate advertising revenue. PackerInsider.com is a subscription – based website.
Over the last three years, both daily circulation and Sunday circulation have decreased by about 1% annually. Full run advertising linage has also fallen by a similar amount; however, after accounting for increases in part run advertising and preprint pieces, it appears there has been no real decrease in total advertising.
The Journal Sentinel generates approximately $230 million in revenue. Advertising accounts for 80% of the Journal Sentinel’s revenue (the other 20% is circulation revenue). Advertising revenue is somewhat cyclical, and may currently be above “normal” levels.
It’s difficult to value the Journal Sentinel, because JRN places the Journal Sentinel and its community newspapers under one reportable segment. Even if the numbers for the Journal Sentinel were broken out, I would have still have some difficulty coming up with an exact figure, because I’m not an expert on newspapers.
Having said that, I can’t see how the Journal Sentinel could be worth less than $250 million or more than $500 million. If I had to put a dollar figure on the Journal Sentinel, it would probably be in the 250 – $300 million range. I’d like to think this is a conservative estimate, but I don’t know enough about newspapers to be sure. JRN’s failure to break out the numbers for the Journal Sentinel apart from the community newspapers complicates the issue. However, I am quite confident the Journal Sentinel is worth no less than $250 million.
It’s even more difficult to value JRN’s Journal Community Publishing Group. It consists of 43 community newspapers, 41 shoppers, and 9 niche publications (automotive, boating, etc.). The group generates about $100 million in revenue. I can’t value this group apart from the Journal Sentinel, because of the aforementioned lack of disclosure (combining the group with the Journal Sentinel for reporting purposes), my inability to find enough public information on community newspaper businesses, and other such factors.
The best I can do is offer an educated guess as to the combined value of JRN’s publishing business. My best guess is that, taken together, the Journal Sentinel and the community newspapers are probably worth somewhere between $300 million and $500 million.
Broadcasting
Journal Communications owns 38 radio stations. The most important of which are: WTMJ-AM Milwaukee, KMXZ-FM Tucson, KFDI-FM Wichita, and KTTS – FM Springfield (MO). All four of these stations are number one in their market. JRN’s radio stations generate about $80 million in revenue.
Journal Communications owns seven television stations. Almost all of these stations are ranked as one of the top three in their market. Three are NBC affiliates, three are ABC affiliates, and one is a Fox affiliate. JRN owns two stations in Milwaukee, two in Idaho, one in California, one in Michigan, and one in Nevada. Journal’s TV stations generate about $90 million in revenue.
Again, it’s too hard for me to value JRN’s TV stations and radio stations separately. Take
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