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Reading on Dow Jones still poor after ouster; Thin margins at flagships; online fares better.(In the Markets)

Crain's New York Business, January, 2006 by Elstein, Aaron

Byline: Aaron Elstein Long-suffering Dow Jones & Co. shareholders rejoiced when the company said last week that it would replace Chief Executive Peter Kann and his wife, Wall Street Journal Publisher Karen Elliott House. "Finally, some good news from Dow Jones,'' cheering analysts at Lehman Brothers said.

Unfortunately, the good news stops there; investors would be wise to take any profits now. Simply put, Dow Jones is a troubled company in a troubled business. Its cost of capital has exceeded return on capital for five years running, according to securities firm Matrix USA. As long as the situation persists, the stock isn't going anywhere, according to Matrix research director Ivan Feinseth, who rates it a sell. "This company is a destroyer of...

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