In November 2012, I tipped this newspaper stock as a potential recovery play. At 79p each, the company’s shares were trading on a forward price-to-earnings (p/e) ratio of just 2.9 times, giving it a market value of just over £200m.
It had debts of £162m and a hole in its pension fund to the tune of £283m. It looked as though the market was pricing the shares for bankruptcy. Yet the firm was still producing lots of cash flow.
It had a new CEO, Simon Fox, who planned to cut costs and [...]