In this section we place one stock under the microscope and give it the unconventional assessment. Fairfax Media (FXJ $85.5) –  Is a media group with a range of publishing news, information and entertainment businesses that deliver content via newspaper, magazine, online formats and radio broadcasting. In Australia, mastheads include The Sydney Morning Herald, The Age, The Australian Financial Review, The Canberra Times, The Sun-Herald, Stock and Land and The Land. Domain Group is its other main revenue generator. Founded by Fairfax it was listed on the ASX in 2017. Fairfax retain a 60% ownership of shares. The division comprises of Real estate media and services business. Bulls The company has a strong balance sheet with next to no gearing. Fairfax’s print media has a considerable audience in Australia. Management are fully committed to try and turn the ship around and position the company so that it is able to better compete in a new digital world. Bears The entire print media has been decimated by disruption, as content went digital. This will only continue to accelerate. Fairfax faces heavy competition from the likes of Google and Facebook, who have huge budgets and global reach. The strong balance sheet Fairfax has, may not be enough or utilized sufficiently to improve earnings. Do we invest in it?    No. We do not hold Fairfax in any of our buckets. Broker Comments Broker View: Citi (NEUTRAL $0.78) – The broker is on the fence with Fairfax. It says that 62% of FXJ’s current valuation is Domain (DHG) not so much the print media. Therefore what Nine Entertainment is acquiring is a stake in Domain. The game here is not newspapers. Fundamentals On fundamentals, Fairfax is losing money but its balance sheet is OK. The company trades on a forward PE of 15x, which isn’t too bad when you compare with Nine Entertainment Group’s PE of 13x. Fairfax has a strong balance sheet. It’s gearing is very low at 29%. But this figure doesn’t take into account Domain’s net debt position of $140.2m and Macquarie Media net debt of $22.4m. Total net…

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