Roughly every week or so I'm going to come out with a stock pick to follow. That doesn't mean I think it is going to go up within the week. However, it does mean that I think over time it will greatly outperform the market.
News Corp (NWSA): $6 a share....Owner of Fox News, 20th century fox, myspace, wallstreet journal and many other media outlets. Run by Rupert Murdoch
This stock is greatly undervalued due to the unprecedented slowdown in advertising spending. It will stay undervalued if you believe that advertising will never recover. I happen to be in the camp that feels advertising will live to fight another day. Given that, Rupert Murdoch's company has a war chest of cash to cope with the downturn and is taking pro active measures via cost cutting. One of the greatest investors in the history of the United States, Seth Klarman, has bought a substantial stake in the company. The good news for somebody like you is that you can get in News Corp at prices 50% lower then Seth Klarman was buying at. Downward risks include that the newspaper business takes up too large a portion of their revenue stream.
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