Gamble of the week: struggling newspaper group

Buying shares in struggling companies that can recover is a good investment strategy. That’s because not many people feel comfortable buying them. This is explained by people’s natural tendency to extrapolate the recent past into the future. So what’s been bad, will stay bad. When things improve, the shares can go up a lot.

This week's gamble fits into this camp quite well. It has been struggling for years, and has been hammered by changes in the way people access the news.

Printed newspapers have seen their circulation plummet as more people have turned to the internet to find out [...]

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