Tribune Stock drops on brokerage Downgrade

Tribune Company stock got hit because of a downgrade by JP Morgan:

"We see these developments limiting the recovery of Tribune's core business," JPMorgan analyst Frederick Searby said in a client note.

The firm cut its annual earnings expectations for Tribune by 3 cents to $2.18 per share, and it estimates Tribune could see a 1 percent drop in ad revenue over the next 12 months because of Federated and May's store closings. JPMorgan also sees movie studios advertising less in newspapers as more people use the Internet to look up movie times. Tribune has "disproportionate exposure" to movie advertising, which represents 6 percent of publishing revenue and is a key category at the L.A. Times, the firm said.

Not only is the internet taking readership away but the reasons people would read the advertising is also going to the internet.