Latest report from Morgan Stanley dated 9/19/05. One interesting note: they no longer have a price target for the stock.
"Quick Comment: Shares of JRN have dropped almost 9% (intraday low on 9/19/05) in the past week. This follows a relatively desultory August monthly ad report that included flat ad revenues at the Journal Sentinel newspaper, an expected large drop in TV (up against the 2004 Olympics), and more evidence of a slowdown in radio which was up 1.3%. At the 9/19/05 close of $14.91 (a new low), the shares are trading at approximately 8 times projected 2006 EBITDA, excluding Telecom to which we assign a 4.0X EBITDA multiple. One can argue whether that is attractive or not, but it is certainly at the low end for the industry. August newspaper ad revenues were unusually impacted by the PGA tournament in the Milwaukee region a year ago, which boosted retail ad spending and circulation. We expect September year-over-year results to improve some. New color capacity comes on line in the fourth quarter of 2005 at the daily in Milwaukee, boosting color capacity by 50% to 36 pages. A new super distribution center is expected to start-up before year-end, allowing for cost savings and the consolidation of several smaller facilities. The company should benefit from the return of the NFL to NBC in 2006, as well as the Winter Olympics and a mid-term election cycle in 2006. Finally, the stock may be under some pressure during September as a two-year grace period on employee bank loans begins to expire potentially increasing interest rates on current outstanding bank loans. This may be leading some employees to liquidate. All in all, we suspect for longer term investors, the current stock price could prove to be an attractive entry point. Our rating remains Equal-Weight."