Ariel Investments just notified federal regulators in a new filing that it now owns 28.8 million Gannett shares -- 12.5% of all -- more than double the 11.1 million it held as of Dec. 31, according to MSN data.Investors went nuts: GCI's stock recently traded for $3.74, up $1.05, a stunning 38%, Google Finance is now reporting. Broader markets are up, too, but not so much: The Dow Jones industrials and the S&P-500 index are both up less than 3%.
The Chicago money management firm led by founder John Rogers displaces Brandes Investment Partners of San Diego, Calif., as Gannett's No. 2 shareholder.
The old line-up, at Dec. 31, according to MSN:
- AllianceBernstein: 30,843,284 (13.4% of all shares)
- Brandes Investment Partners: 23,469,400 (10.2%)
- Barclays Global Investors: 13,600,252 (5.9%)
- Ariel Investments: 11,121,977 (4.8%)
- State Street Global Advisors: 9,823,345 (4.3%)
Actually, Ariel bought its first bunch at the highest prices, and it looks to me as if they are trying to dollar cost average.
ReplyDeleteI know that my current dollar cost average is $4.00 exactly. I hope the stock gets there so i can sell and not take a loss for once. May the stock value rise!
ReplyDeleteOh, such a shame that Moon sold his shares last week.
ReplyDeleteSome of you people would bitch about a free lunch.
ReplyDeleteSounds like the plot for a modern-day "Producers." Springtime for Gannett and Germany.
ReplyDeleteLet's spell it class.
ReplyDeleteB-U-Y-O-U-T
GO GCI!
ReplyDeleteThere is NO such thing as a free lunch. There's always a hidden cost buried in the fine print. Usually after the sanity clause. HA!
ReplyDeletePoor economic forecasts suggest more than optimism is afoot.
ReplyDeleteRecent history suggests that even when good times do roll again that real estate, employment and auto (fewer dealers) ad dollars won’t return to previous levels. Advertisers who do remain, will face higher rates for less space and even fewer readers.
Hardly a time for renewed investment, that is, unless the parts truly are more valuable than the whole.
Investors probably want to buy the company to break it up and sell off pieces. Only way to recover some of their losses.
ReplyDeleteI hope 5:14 is right. I think it could be the best thing to happen to some of the better papers.
ReplyDeleteGuys, they are pasige investor that see us as way under value. That value comes from the cuts that we made and are making, our plan, and the apparent strength in the economy. We will not be broken up. Further, if gannett was broken up it would be the death of many of the gci papers. I have been reporting here for a while now that we have strength. This is one sign, and next week's earnings will be another. As I have said before, hang in there guys! We have all been working hard to make it through these tough times. When positive news like today happens you can all take ownership in it. Gannett continues to change and succeed only with your continued support. Each of you should be proud of the work you are doing. I know that I am proud of each of you. Keep up the good work.
ReplyDeleteGuys, it's also possible that Ariel just made a very bad bet. But you hang in there and keep working hard and, if we have to lay you off, just shut up and take it.
ReplyDelete7:06 p.m. I already have my 3Q furlough mapped out.
ReplyDeleteI think Ariel is betting that GCI is going to soon be a takeover target, and someone will come along believing that the parts are worth much more than the whole. You could buy GCI for under $1 billion, and some of these TV properties like the CBS station in Washington, D.C., would bring a premium price for someone wanting to wield political power.
ReplyDeleteThere is NO such thing as a free lunch. There's always a hidden cost buried in the fine print. Usually after the sanity clause. HA!
ReplyDeleteIn the words of philosopher Marx (Chico)...there ain't a no such a thing as a Santaty Clause.
There is of course tremendous value in GCI assets. The problem has always been the debt load, particularly in this financial environment and facing an advertising slump.
ReplyDeleteI suppose if there is value in Ariel's new investment, it is that they are making a strong statement that they don't think GCI will be forced to bankruptcy to clean up the debt load --which would wipe out the common share holders. That fear is what has been weighing on the stock price more than anything else.
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