The company's stock soared 12% today, closing at $2.40 a share, after trading as high as $2.91 earlier in the day, as a confluence of events come into view. On the horizon: Wednesday's presentation to powerful Wall Street stock analysts, on revenue and earnings outlook for the current quarter and near term. Today's trading, on very strong volume, could also reflect a short squeeze. Whatever the cause, GCI closed above the $2 line for the third consecutive trading day, even as stocks overall were flat: The Dow Jones industrials and the S&P-500 index were both off fractionally.
Monday, March 16, 2009
Gannett stock rockets 12%, despite rally fizzling
The company's stock soared 12% today, closing at $2.40 a share, after trading as high as $2.91 earlier in the day, as a confluence of events come into view. On the horizon: Wednesday's presentation to powerful Wall Street stock analysts, on revenue and earnings outlook for the current quarter and near term. Today's trading, on very strong volume, could also reflect a short squeeze. Whatever the cause, GCI closed above the $2 line for the third consecutive trading day, even as stocks overall were flat: The Dow Jones industrials and the S&P-500 index were both off fractionally.
10 comments:
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."
Note: Only a member of this blog may post a comment.
Subscribe to:
Post Comments (Atom)
only because the 401k stock was purchased.
ReplyDeleteand ybr is down so i cant sell it off today. great.
YBR is working fine
ReplyDeleteGo GCI!
ReplyDeleteWow! Stcok up 30%. This is fantastic.
ReplyDeleteIt was $3.22 10 days ago...I guess everything is relative.
ReplyDeleteIt was $3.22 10 days ago...I guess everything is relative.
ReplyDelete3/16/2009 2:11 PM
And the 12 month high was $31.86. Relative indeed.
If this is a short squeeze, what would likely happen this week, next week, next month and six months? In other words, what does that mean?
ReplyDelete"Shorts'' -- investors who hope to profit when a stock goes down -- are especially prone to rumor and panic, I think. They may simply be following a herd mentality this afternoon, fearing that Gannett is about to announce something that could cause the stock to go higher, which could cost the shorts enormous losses.
ReplyDeleteThere are 73,893,977 shorts or 32% of the float. Those are shares that have already been sold and profit as the stock declines (they have been minting money for 6 years now).
ReplyDeleteUnless GCI files for chapter 11, they have to buy the shares back at some point to recognize the profit (like you would sell a share that has gone up to cash in ).
If on Wed. Dubow uses the same speech of "strategic plan" and "things are doing fine", "cyclical downturn" I would expect the stock to go back down to $1.87. Any change to the story may make shorts buy the stock and it could go up, by how much who knows...
I tend to believe that the FASB Board meeting today where they suggested easing "Mark to market" by not forcing the pricing of distressed assets to market probably helped Gannett somewhat today as well. Look at the giant goodwill write downs Gannett took last quarter. I mean, who in their right mind is willing to buy a newspaper right now? That's the definition of an "illiquid market".
ReplyDelete