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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Johnston Press - Eyeing another sizeable acquisition

May 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Regional newspaper baron, Johnston Press, has been a long-time TMI favourite on account of the strength of its local franchises and the fact that management have ratcheted up earnings growth through acquiring and successfully integrating several large acquisitions. Few can match its remarkable feat of growing pretax profit by 270% and earnings by 141% over the last six years. With the advertising cycle now moving firmly in its favour, the latest forecasts which indicate another 22% increase in earnings to 37.8p over the next two years look eminently achievable, particularly if Johnston can hook another acquisition. For many years, Johnston Press was a sleepy, family-run outfit until the appointment of Tim Bowdler as chief ...

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