You hear a lot about print media being dead; online is now all the rage.
This is true in part but it will take time before people change their habits. I for one still enjoy sitting down at lunchtime and reading the paper.
I do also have an Ipad, which I jump on read what I want when I want every morning. Electronic media is certainly give the public the ability to choose what that read and when. In the future I have no doubts that this will be the main medium for all new and entertainment.
Fairfax is looking to move down this path, I congratulate them for that but it will be a slow move.
With the company announcing a loss of $390.8m after writing down goodwill and writing of restructure changes it will also be an expensive one.
We saw a good pick up on their online revenue with growth of 70% since 2007. Again pointing the way to the future for media companies.
While Fairfax is going through this change I am inclined to put my investment dollars elsewhere. Media is solid business but when major change is underway the risk of the business increases substantially.
For me Fairfax is expensive and now is an opportune time to exit the stock.
For more information on Fairfax please contact us on 07 4771 4577.