[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.
Oh my.
ReplyDeleteOh dear.
ReplyDeleteFor the uninformed here--please tell us exactly what that means.
ReplyDelete11:02
ReplyDeleteGannett sucks worse than NYT
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.
ReplyDelete11:36
ReplyDeleteExplain deeper please
All media will go down. People DO NOT PAY for LIBERAL propaganda!!!
ReplyDeleteNY 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!!!
The value of the real estate alone has to be higher than the current market cap.
ReplyDelete11:55
ReplyDeleteSo 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?
Isn't that $4B in debt broken down by lender in the 10-K or one of the 10-Qs?
ReplyDeleteHere'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
Land is $218M, Building and improvements $1.4B. But you also have a bunch o liabilities on the other side of the balance sheet.
ReplyDeleteTotal shareholders’ equity $1.055B but that still counts $2.8B in goodwill
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.
ReplyDeleteTruly 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.)
More info - poison pill summary at http://www.bookrags.com/highbeam/gannett-adopts-poison-pill-measure-hb/, from 1990.
ReplyDeleteMarketWatch 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.
Oooh, please, vultures, please! Nearly anything would be better than Gannett.
ReplyDelete