Friday, May 04, 2007


Stop The Press

Well, its getting to be less and less a secret, instead of RM1.20, do prepare another 30 sen (or maybe 20 sen) to buy your weekend paper. There had been whispers but overall the news has been well kept. The impact will be greater for NSTP than for Star. The good thing is that most analysts do not expect a rise in cover price this year, so the increase just for weekend papers will be a good boost. It also comes at a time when newsprint prices is on a downtrend. Hence better to increase now, as it would be more difficult to increase cover prices later when newsprint prices are lower. Following the crushed merger deal with Utusan, NSTP is apparently looking at a special dividend or the currently popular privatisation, very hush-hush at the present moment. Actually, NSTP would be an excellent vehicle to privatise, take it private, no more dirty laundry in the open, the losing of market share in English paper readership. Its NTA is RM4.11 or thereabouts, some 60% higher than market price, plus after that can relist the highly popular Harian Metro. Away from prying eyes and still a mouthpiece, sounds good?

3 comments:

Jomaropol said...

Salvatore, do you think it might affect Nexnews as well? Although it is a free newspaper.

Salvatore_Dali said...

nexnews, not really, i think the number of people reading the free daily would also read star/nst, and the price hike would not cause them to just read the free daily ... hike not enough to stay away from main publications

Jomaropol said...

Thanks Salvatore for your comments. I agree with you. However there's some volume brewing in nex news. Do you know anything about it? Heard from Zentrader that our Mr Daim is involved?