Tuesday, March 03, 2009

As stock dives, GCI market cap falls below NYT's

[GCI vs. NYT market caps among big media stocks, 10:48 a.m. ET]

What this means: As Gannett's total market value falls even lower, chances rise that so-called vulture investors might try to buy the company on the cheap, then "flip" its assets -- newspapers, TV station licenses -- to anyone who can pony up the money. Biggest current obstacles: the credit squeeze means financing is impossible to get.

14 comments:

  1. For the uninformed here--please tell us exactly what that means.

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  2. 11:02
    Gannett sucks worse than NYT

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  3. Ah, no. It's not the financing, but the poison pill that protects the guys at the top. Otherwise, Gannett would have been bought and split up long ago. It's waaaaayyy below book value.

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  4. 11:36

    Explain deeper please

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  5. All media will go down. People DO NOT PAY for LIBERAL propaganda!!!

    NY Times
    NBC (GE)
    Gannett
    Washington Post
    CBS

    Doesn't matter the medium, liberalism and socialism does not sell. Also, you are all being punished by voting in the biggest socialist as president.

    Don't blame Dubow, blame Harry Reid, Nancy Pelosi, Barack Obama, Chris Dodd and Barney Frank.

    All you reporters all cover them with a blind eye. You are creating your own problem. Get ready for the bread lines!!!

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  6. The value of the real estate alone has to be higher than the current market cap.

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  7. 11:55

    So what? The real estate is an assset against the 4B loan. The real estate would need to sell for the market cap plus 4B to break even. BK is coming.

    Anyone know who holds gannett 4B in loans?

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  8. Isn't that $4B in debt broken down by lender in the 10-K or one of the 10-Qs?

    Here's a link to the brand-new 10-K, if you want to take a peek; I've got to grab some breakfast before it gets too late. Here's a short URL: http://tinyurl.com/cbzm9q

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  9. Land is $218M, Building and improvements $1.4B. But you also have a bunch o liabilities on the other side of the balance sheet.
    Total shareholders’ equity $1.055B but that still counts $2.8B in goodwill

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  10. The one and only option is to squeeze the shorts (63M shares that have already been sold) and sell stock when it is around $10.
    Truly people are betting on them going out of business, any hint that won't happen will price the assets accordingly, even if business tanks they should still have positive cash flow (this isn't AIG, or LEH of BSC or CNO, etc.)

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  11. More info - poison pill summary at http://www.bookrags.com/highbeam/gannett-adopts-poison-pill-measure-hb/, from 1990.

    MarketWatch lists book value per share as of today at $28.96, so $2.34 is tempting if not for the added costs.

    BTW, on other comments - GCI's drop is not due to liberals. It's a lot deeper than that. And I don't expect Gannett to go out of business.

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  12. Oooh, please, vultures, please! Nearly anything would be better than Gannett.

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Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."

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