Stock-in-Trade
Wedding Tips for the Foolish

If you just got engaged over the holidays, chances are that you haven't picked a place for the ceremony, you haven't decided on the menu for the reception, and you haven't even thought about your china pattern.

But you've probably already bought about a dozen bridal magazines.

In Stock-In-Trade, we look for companies which might make an interesting investment whose line of business is in the topic that we're investigating. This week we're going to look at PRIMEDIA, the publisher of that mother of all nuptial rags, Modern Bride.

PRIMEDIA Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PRM)") else Response.Write("(NYSE: PRM)") end if %> publishes 136 magazine titles and 138 information products, operates 25 television networks, and offers more than 60 web sites. The company operates in the specialty magazine, education and information sectors, with an enterprise value of over $3.4 billion and 6,200 employees.

In addition to Modern Bride, PRIMEDIA also publishes Seventeen, Soap Opera Digest, New York, Chicago, Weekly Reader, and The World Almanac. PRIMEDIA is the source of specialized information for highly targeted audiences with an average market share of 59% and the #1 or #2 position in 84% of their markets. They also produce Channel One, an information-format production for elementary-aged students.

The company went public in 1995 and has quickly gained market share ever since. Originally listed as K-III Communication Corp., the company changed its name three months ago to PRIMEDIA and now trades under the symbol PRM. Sales have averaged 19% growth per year for the past 7 years and EBITDA has grown 21% per year over the same time period.

Seven analysts currently follow PRIMEDIA, all with "Buy" or "Outperform" recommendations. While the publishing industry is expected to track the overall market over the next five years, analysts are predicting that PRIMEDIA will lead the pack with 20%+ earnings growth annually.

If you'd like to find out more about PRIMEDIA, check out their web site for the latest information. Then come back here to the Fool and find out what your fellow Modern Bride readers have to say on our Message Boards.