Look a NYT results today, abysmal to say the least. You have to face the fact that this is a dying business, bloggers have taken over for local content, craigslist for classifieds and the portals for news. What is left? Yes, there will always be newspapers, just like you can still find VHS tapes, or analog stereos or a typewriter, but the revenues will be half what they are today. So, in my opinion, this stock is what is known as a value trap, looks cheap but with 20% decline in ad revenue it won't be cheap for long. The $100M the Olympics will bring in by my estimates won't be able to offset the decline in everything else. When $40 looked, cheap, then $35, $30, now $27.5 is providing that ray of hope. Remember hope dies last, and don't forget to sell at the bottom.
I'm afraid you are exactly right. I've had a position in GCI for more than a decade and the price is lower now than when I bought it! Granted they pay a great dividend but as the company loses business and the stock loses value, a high dividend cannot continue. I will join the other rats and desert this ship.
Value traps are like roach motels. They lure yield starved investors with high divy payouts in low interest rate enviornments. Then before you realize it, your 6% divy play has lost 30% of its market value. PFE, like GCI, is a yield cow with a rapidly falling revenue base. The company attempts to defend the sustainability of the dividend, but with no new sources of business, it's simply a matter of time before its gone. And with no dividend, these stocks are all but worthless