** Choppy trading continues in UK publishing stocks onTuesday even after H1 results from Johnston Press showsigns of improvement & Trinity Mirror wins permission toappeal recent phone-hacking judgment
** Volumes thin in general due to holidays though just theone trade late afternoon for Johnston Press. Trinity sees athird of a full-day's average by midday
** "Scared of the sector," says a market-maker (referring toinvestors broadly), with newspaper groups hugely unfashionableamid declining UK advertising
** However, quite a lot of the bad news is in the price,says Premier AM's head of UK equities Chris White about Trinity,a "deep value investment" he holds (1-yr fwd PE of 4.8x,Johnston on 4.5x, Daily Mail & General on 14x)
** Outlook for sector improving: PM flags rate of printadvertising decline has alleviated (both Trinity & Johnstonreported improvement in advertising trends from May & June); tocombat negative backdrop cos bulking up digital
** PM also notes publishers benefiting from increasedadvertising in press from supermarkets & cos like BT
** White likes Trinity's divi yield of 3.3% & net cash onbalance sheet; co kept/slightly increased profits & margins inlast 4 yrs against hugely negative backdrop owing to costcontrol skills which PM says will keep holding it in good stead (RM: tricia.wright1.thomsonreuters.com@reuters.net)
