PRM - Sector: Services --- Industry: Publishing - Periodicals

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PRIMEDIA Inc.
745 Fifth Avenue
New York, NY 10151
Phone: 212-745-0100
Fax: 212-745-0121
Web Site: http://www.primediainc.com

DETAILS  
Index Membership: N/A
Sector: Services
Industry: Publishing - Periodicals
Full Time Employees: 4,500


BUSINESS SUMMARY  
PRIMEDIA, Inc. operates as a media company in the United States. The company conducts its operations through four segments: Enthusiast Media, Consumer Guides, Business Information, and Education. The Enthusiast Media segment produces magazine advertising pages in automotive, outdoors, action sports, crafts, history, marine, and equine and home technology categories. It delivers content, both print and online, that includes consumer magazines, their related Web sites, and live events. The Consumer Guides segment publishes and distributes rental apartment guides, new home guides, and auto guides in print and online formats. The Business Information segment publishes magazines, directories, data products, buyer's guides, Web sites, and events that provide information to business professionals. The company's Education segment produces and delivers education and training materials targeted to classroom audiences via satellite, DVD, CD-ROM, live events, and over the Internet. It operates Channel One, a proprietary network to secondary schools; Films Media Group, a source of educational videos in multiple formats; and Interactive Medical Network, a continuing medical education business. PRIMEDIA was co-founded by Charles G. McCurdy, Beverly C. Chell, and William F. Reilly in 1989 as K-III Communications Corporation. It changed its name to PRIMEDIA, Inc. in 1997. PRIMEDIA is headquartered in New York City. The company sold its About, Inc. to The New York Times Company in March 2005.

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Insider action. VP buys 125K shares.
Indicators say up and very little selling.

BRIEF: For the nine months ended 30 September 2005, Primedia Inc.'s revenues increased 2% to $798.3M. Net loss from cont. ops. fell 24% to $40.6M. Revenues reflect an increase in advertising revenues due to increased sales from the Consumer Guides segment. Lower loss reflects a decrease in interest on shares subject to mandatory redemption, lower provision for severence, closures & restructuring related costs and the absence of provision for unclaimed property. http://www.primedia.com

Volume Today: 3,447,300
Avg Volume (3m): 723,503

Support @1.25
Resistance @ 1.80...2.23...2.50

Technicals
MACD is Bullish
Percentage Gainer

Last Price Quote is:
8.08%above 13-day EMA
-14.52%below 50-day EMA
RS Rating: 2 

Fundamentals
Key Data:
Market Cap (M): $422.63 
P/E Ratio: 108.34 
PEG Ratio: -10.9238 
Next Earnings: 03/06/2006
Last Analyst Rating: Buy

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Press Release Source: MOTOR TREND


MOTOR TREND Ranks the Top 50 Industry Players with 2006 Power List
Tuesday January 3, 11:02 am ET


LOS ANGELES--(BUSINESS WIRE)--Jan. 3, 2006--MOTOR TREND magazine, the world's automotive authority and part of the PRIMEDIA Consumer Automotive Group, today announced its second annual Power List rankings. Recognizing the real power in the auto business isn't always under the hood, the editors at MOTOR TREND have selected the top 50 people who have shaped the world's auto industry over the past 12 months. MOTOR TREND's 2006 Power List ranks these players by influence and impact on the automotive landscape and highlights the significant contributions that earned them a place on the list.
"Behind every great car, is an even greater person," said Angus MacKenzie, editor-in-chief, MOTOR TREND. "The automotive industry is molded by dynamic, creative and instinctive thinkers and is one of the few industries where one person has the potential to transform an entire marketplace. For that reason, it is important to recognize the entrepreneurs and visionaries that have shaped the cars we buy and changed the way we think about them."

The following is the top ten list of MOTOR TREND's 50 rankings for 2006:

#1 Carlos Ghosn - Nissan Motor Corporation and Renault president and
                  CEO
#2 Dieter Zetsche - DiamlerChrysler chairman
#3 Wendelin Wiedeking - Porsche AG executive board chairman and chief
                        executive director
#4 Jim Press - Toyota Motor Corporation COO
#5 Bob Lutz - General Motors vice chairman, global product development
#6 Chris Bangle - BMW Design Group chief
#7 Bernd Pischetsrieder - Volkswagen AG chairman
#8 Burkhard Goeschel - BMW AG management board member
#9 Kirk Kerkorian - Principal, Tracinda Corp
#10 G. Richard Wagoner - General Motors Corporation chairman


Additional personalities of note on the Power List include:

#12 Takeo Fukui - Honda Motor Co., Ltd. CEO
#16 Roger Penske - Mega dealer, race-team owner, business man
#24 Ulrich Bez - Aston Martin chairman and CEO
#37 Carroll Shelby - Entrepreneur
#50 Craig Jackson - Barrett-Jackson Auction Company president, CEO


The complete list of this year's top 50 Power List rankings can be found in the February 2006 issue of MOTOR TREND on newsstands January 3rd 2006, or by contacting Jocelyn Johnson at [email protected].

About MOTOR TREND

MOTOR TREND, a PRIMEDIA publication, was founded in 1949 and has a circulation of 1.1 million and a total readership of 7.1 million. Internationally recognized as the world's number one automotive authority, MOTOR TREND is one of the leading brands in automotive publishing. The MOTOR TREND brand is comprised of MOTOR TREND Classic, motortrend.com; MOTOR TREND Radio; Truck Trend; MOTOR TREND International Auto Shows; MOTOR TREND en Espanol; and the renowned MOTOR TREND Car, Sport/Utility and Truck of the Year Awards program.

Contact:
Gravitas Communications
Jocelyn Johnson, 718-422-0594
[email protected]

--------------------------------------------------------------------------------
Source: MOTOR TREND

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Turnaround
Expected to turn profit and earn 10c in 06, up from 2c loss in 05.
There has been very strong insider buying interest at current prices.
Primedia publishes consumer guides and specialty magazines, such as Motor Trends and In-Fisherman.

Support @ $1.80...1.21
Resistance @ $2.23...2.49...2.75

Technicals
MACD is Bullish
Stochastic is Bearish
Percentage Gainer

Last Price Quote is:
8.79%above 13-day EMA
-10.77%below 50-day EMA
RS Rating: 2 

Fundamentals
Key Data:
Market Cap (M): $422.63 
P/E Ratio: 108.34 
PEG Ratio: -11.8095 
Next Earnings: 03/06/2006
Last Analyst Rating: Buy

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Press Release Source: PRIMEDIA Inc.


PRIMEDIA Announces Intention to Sell Enthusiast Media Segment
Friday February 9, 8:30 am ET 
Board of Directors Decides to Explore Sale as Alternative to Spin-Off


NEW YORK--(BUSINESS WIRE)--PRIMEDIA Inc. (NYSE: PRM - News) today announced that its Board of Directors has authorized the Company to explore the sale of its Enthusiast Media segment (PEM). PRIMEDIA has retained Goldman Sachs and Lehman Brothers to manage this process.


PEM is the number one special interest media company in the U.S. with over 70 publications, 90 leading websites and over 65 events, with revenues of over $500 million in 2006, excluding the recently divested Outdoors Group. Some of PEM's best known assets include Motor Trend, Automobile, Hot Rod, Automotive.com, Power and Motoryacht and Surfer.

Dean Nelson, Chairman, President and CEO of PRIMEDIA, said, "The Board believes the market environment is extremely favorable for the sale of PEM. We have spent considerable time reviewing strategic options for the Company and have been exploring, at the Board's direction, a possible spin off of our Consumer Source division, creating two distinct publicly traded companies. We have received a favorable IRS ruling and virtually completed complying with the Securities and Exchange Commission regulations. Therefore, spinning off the Consumer Source business remains an option.

"However, given the multiples PRIMEDIA received from the sale of the Outdoors Group and the particularly strong investment and debt markets, the Board believes the best course of action for PRIMEDIA shareholders is exploring the complete sale of PEM," Mr. Nelson said. "In addition, we are seeing positive results from our online and product investments, which we believe will be valued by potential acquirers. We believe there will be strong appetite for our leading brands." Mr. Nelson added, "The Company will apply the proceeds from the sale to pay down debt."

About PRIMEDIA

PRIMEDIA is the leading targeted media company in the United States. With 2005 revenue from continuing operations of $822 million, its properties comprise over 100 brands that connect buyers and sellers through print publications, Internet, events, merchandise and video programs in two market segments:

PEM is America's #1 special interest media company, with more than 70 magazines, 90 websites, over 65 events, two television programs, 400 branded products, and such well-known brands as Motor Trend, Automobile, Automotive.com, Equine.com, Power & Motoryacht, Hot Rod, Snowboarder, Stereophile, Surfer, and Wavewatch.com.
Consumer Source, Inc. is the #1 publisher and distributor of free consumer guides in the U.S. with Apartment Guide, Auto Guide, and New Home Guide, distributing free consumer publications through its proprietary distribution network, DistribuTech, in more than 60,000 locations. The Group owns and operates leading websites including ApartmentGuide.com, AutoGuide.com, NewHomeGuide.com, RentClicks.com and RentalHouses.com.
This release contains forward-looking statements as that term is used under the Private Securities Litigation Act of 1995. These forward-looking statements are based on the current assumptions, expectations and projections of the Company's management about future events. Although the assumptions, expectations and projections reflected in these forward-looking statements represent management's best judgment at the time of this release, the Company can give no assurance that they will prove to be correct. Numerous factors, including those related to market conditions and those detailed from time-to-time in the Company's filings with the Securities and Exchange Commission, may cause results of the Company to differ materially from those anticipated in these forward-looking statements. Many of the factors that will determine the Company's future results are beyond the ability of the Company to control or predict. These forward-looking statements are subject to risks and uncertainties and, therefore, actual results may differ materially. The Company cautions you not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. All references to "Company" and "PRIMEDIA" as used throughout this release refer to PRIMEDIA Inc. and its subsidiaries.

Contact:
Investors:
Eric M. Leeds, 212-745-1885
or
Media:
Joshua Hochberg, 212-446-1892
Elliot Sloane, 212-446-1860

--------------------------------------------------------------------------------
Source: PRIMEDIA Inc.

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Triple Bottom (Reversal)
The triple bottom is a reversal pattern made up of three equal lows followed by a breakout above resistance. While this pattern can form over just a few months, it is usually a longterm pattern that covers many months. Because of its longterm nature, weekly charts can be best suited for analysis.

As the triple bottom develops, it can start to resemble a number of patterns. Before the third low forms, the pattern may look like a double bottom. Three equal lows can also be found in a descending triangle or rectangle. Of these patterns mentioned, only the descending triangle has bearish overtones; the others are neutral until a breakout occurs. Similarly, the triple bottom should also be treated as a neutral pattern until a breakout occurs. The ability to hold support is bullish, but demand has not won the battle until resistance is broken. Volume on the last advance can sometimes yield a clue. If there is a sharp increase in volume and momentum, then the chances of a breakout increase.

52wk Range: 1.20 - 2.40
Volume: 4,260,400
Avg Vol (3m): 486,427

Technicals
13-day MA Cross Above 50-day MA
Close Above the 50-day MA
Close Above the 13-day MA
Close Above the 200-day MA
Percentage Gainer

Last Price Quote is:
13.07%above 13-day MA
14.54%above 50-day MA
RS Rating: 83 

Fundamentals
Key Data:
Market Cap (M): $438.45 
P/E Ratio: 151.41 
PEG Ratio: 14.381 
Next Earnings: 02/20/2007
Last Analyst Rating: Hold

[setravis]

Another nice up day off the Triple Bottom (Reversal)
Outstanding volume.......

52wk Range: 1.20 - 2.40
Volume: 2,891,299
Avg Vol (3m): 528,044

Technicals
Percentage Gainer

Last Price Quote is:
18.64%above 13-day MA
22.88%above 50-day MA
RS Rating: 90 

Fundamentals
Key Data:
Market Cap (M): $438.45 
P/E Ratio: 151.41 
PEG Ratio: 14.381 
Next Earnings: 02/20/2007
Last Analyst Rating: Hold

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By Karen Brettell

NEW YORK, Feb 12 (Reuters) - Primedia Inc.'s (PRM,Trade) debt may have little price upside left, after rallying significantly on the news that the magazine publisher is exploring the sale of its Enthusiast Media division and will use some proceeds to pay down debt.

One of the publisher's three outstanding bond issues, however, may still have room to rally in the event the company also pursues a sale of its remaining Consumer Source business, which could potentially result in this debt being tendered.

Primedia spokesman Joshua Hochburg, however, said Primedia's board believes the Consumer Source division has a lot of unrealized potential and plans to keep the business.

Primedia, which publishes titles including Motor Trend and Hot Rod, said on Friday its board authorized the company to explore the sale of its Enthusiast Media segment to help cut its debt load of more than a $1 billion. For details, see [ID:nBNG10418]

"They are very high quality magazines and will sell for a lot of money," said Shelly Lombard, senior high yield analyst at Gimme Credit. "These guys have been trying to figure out for years how to extract value, to make the stock trade better, and they had too much debt."

The cost to insure Primedia's debt with credit default swaps fell by around 100 basis points to about 310 basis points on the news, or $310,000 per year for five years to insure $10 million in debt.

"All the company has publicly said is it will use the proceeds from the sale to pay down debt and they haven't indicated how much debt pay-down they're planning, or what specific debt they plan to retire," said Al Alaimo, portfolio manager and director of research at SCM Advisors in San Francisco.

However, the size of the sale would be substantial relative to the company's debt level.

"Both of those businesses are very desirable and should attract high M&A multiples, and the reason is because they are strong generators of free cash flow and can fit in with other people involved in the media industry," Alaimo said.

On Sept. 30, 2006, Primedia's net debt was $1.31 billion and it had about $327 million in cash and unused credit lines. Analysts expect the sale of Enthusiast Media would raise more than $1 billion.

However, with two of the company's three outstanding bonds being callable this year at levels near where they are trading, any credit improvement may already be priced in.

The company's floating rate note due 2010 is callable in May at 103 cents on the dollar, Alaimo said. It traded on Friday over 104 cents on the dollar, according to MarketAxess.

Primedia's 8.875 percent bond due 2011 is also callable now at 104.438 cents on the dollar, and this will drop to 102.958 cents in May, Alaimo added. The bond traded on Monday at 103.25 cents.

By contrast, the company's 8 percent bond due 2013, which will be callable in 2008, may still have some upside left if the company follows a sale of Enthusiast Media with the sale of its consumer guides business, Consumer Source, its last remaining business.

"That's a speculative possible outcome but it's something that if you look to the history of where the company has been and where its going, its also a logical outcome," Alaimo said.

"Another outcome could be they keep the consumer guides business as a public company and retire a lot of the debt, or reinvest it in acquisitions," Alaimo said.

Primedia's 8.0 percent bond had risen to 101.5 cents on the dollar as of Monday, up from 96.87 cents before the news, according to MarketAxess.

The 8.0 percent bond may be called at 104 cents on the dollar next year. However, if Primedia decides to follow a sale of its Enthusiast division with a sale of Consumer Source, it is likely it would tender for this bond, and this could be for more than 104 cents, Alaimo said.

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Chart update

[setravis]

This stock has a fine Dividend rate,
so look to get in at a later date...

Day's Range: N/A - 5.37
52wk Range: 2.48 - 4.69
Volume: 357,653
Avg Vol (3m): 43,881
Market Cap: 222.29M
P/E (ttm): 9.63
EPS (ttm): 0.52
Div & Yield: 0.28 (6.20%)


Technicals
Percentage Gainer

Last Price Quote is:
22.91%above 13-day EMA
33.59%above 50-day EMA
RS Rating: 94 

Below are the 6 months, 1 year, 2 year and 3 year charts.......

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Primedia (PRM)
Media company Primedia(PRM) offers customers with directories for rental property sector and residential real estate industry. Since the start of September, PRM stock has gained 27.6%, and the stock is up 11.4% year-to-date. Additionally, PRM has met or exceeded earnings estimates for three of the last four quarters. Last quarter, this penny stock beat EPS earnings by 271%. Trading at $5.05, PRM has exceeded its 52-week high of $4.29.