Wednesday, May 06, 2009

GCI | In early trading, Gannett soars another 16%

Gannett's stock recently traded for $5.70, up 77 cents, or 15.6% a share -- marking the sixth consecutive trading day of higher prices, Google Finance is now reporting. GCI closed yesterday at $4.93, on nearly twice average daily sales volume:
  • April 27: $3.47 (6.8 million shares)
  • April 28: $3.40 (4.9 million)
  • Wednesday: $3.81 (7.3 million)
  • Thursday: $3.91 (7.6 million)
  • Friday: $4.37 (9.2 million)
  • Monday: $4.47 (7.3 million)
  • Tuesday: $4.93 (16.2 million)
Please post your replies in the comments section, below. To e-mail confidentially, write gannettblog[at]gmail[dot-com]; see Tipsters Anonymous Policy in the green rail, upper right.


  1. The stock is up another 14% but I'm still not impressed with this company. The bottom line is that the community newspapers were gutted and have very little content. Sorry digital people, I know you think it's all about you, but the big money maker is still print.

  2. This is what happens when you take imminent bankruptcy off the table, which is what Gannett management has managed to do in the last couple months. Bankuptcy takes the stock to $0, and that threat was a major part of the stock cratering in the first quarter. Is it going back to $50 any time soon? No. Might it get back to $10 sooner rather than later? Could happen.

    What still sucks is when I look at 1Q results, I come to the conclusion that the "furcations" were the difference between a profit and a loss for the company, and as long as that's true they will continue.

  3. I just hope it can maintain. Often, these runups come right before our company match, and then we see dips making us lose money in the sell-off. And I agree with 10:38. The company has done nothing to build long-term value.

    We might see growth if it makes it through the economic downturn because the company will, no doubt, be split into pieces as soon as buyers are available.

  4. Gannett cannot win on this blog with most of "Jim's Whiners."

    Stock price goes down -- you come on here and gleefully chortle and guffaw about how badly the company is managed and offer bold predictions about its rapidly approacing demise.

    Stock price goes up -- you come on here and gleefully explain why it means nothing good for the company and the way it is managed. Here are excerpts from the (predictable) first three responses here today:

    1. ..."I'm still not impressed with this company."
    2. ..."fucations were the difference between a profit and a loss or the company."
    3. ..."the company will, no doubt, be split into pieces as soon as buyers are available."

    Why not just be pleased something positive is happening for the company?

    Now .... quickly come back and lable me as a corporate shill. If you knew me, you would know how laughable that claim would be.

  5. Interstingly, there are reports too of Lee stock trading at heavy volumes and the price climbing back over $1.
    GCI and Lee, two is a trend, right?

  6. just hit $6!!!

  7. First, I am not a "corporate troll" as some would say after they read my post. I am an investor that has followed Gannett for many years.

    I think the operating managers like Dickey, Saridakis and Lougee are doing a great job. I was encouraged by the shareholders meeting presentation.

    1. Newspapers have cut back expenses and recognize that they have more to do and are willing to do it.
    2. Digital is a shining star and accomplished a lot over the past year. We can see the strategy starting to be executed.
    3. Broadcast has accomplished something not many others have with the renegotiation retrans fees.
    4. Corporate Finance has just completed many good maneuvers with refinancings, pension debt obligations, cost containment programs.

    We also applaud the USA Today replacement, Dave Hunke and look to see a turnaround in that business.

  8. Heh. Investor dude, furcations have a much more immediate impact on most readers of this blog than the Gannett portion of your portfolio is liable to have on your life in the same timeframe. And if you followed the last call, as you claim, you know that the analysts were pushing management for how they were going to keep those opex cost savings going forward.

    But, hey, I'm thrilled the stock is going up. I see a real chance to double my money in Gannett in the next few months. Which would more than make up for the "furcations" my spouse is definitely on the hook for (two weeks) and quite possibly more yet to come.

  9. GCI and Lee, two is a trend, right?
    5/06/2009 12:08 PM

    No, no, 12:08 p.m., Mother Gannett say, THREE is a trend!

    Two is just a reason to ask for the assignment to pad your byline count.

  10. Go, GCI, GO!
    I know a little old lady at an Indiana paper that had ALL of her 401k, or at least a lot of it, in Gannett stock. She can't retire because she thought she had "lost everything."
    For her sake, if no other reason, pray for it to rocket back to at least 2007 value!

  11. How is this happening? What's behind this? Something doesn't seem right.

  12. Want a reason:*http%3A//|headline|quote|text|&par=yahoo

    What is the stock shorted most by percent of volume GCI.

  13. Guys, be careful!! Gannett will not go bankrupt, however the final solution has not been found for the trouble that Gannett is in. The stock has done well, but believe me it will not go back to 2007 levels anytime soon. In fact, it will go down again. Maybe not tomorrow, maybe not the next day either but it will go back down. The next quarter will show levels of reaching the bottom but we have not gotten there. Also, we have no idea what will end up with this company. It cannot stay the same, believe me. They are trying to make the changed that are needed. They may get it done, but unfortunately they probably will not. Think about the Kodak Company and digital photography. They tried to make the changes in 2000 to deal with digital photography. They still haven’t figured it out. If I had to bet I would be against Gannett. Not because I am a hater. Let me explain my reasons.

    Gannett is trying to make the rapid change old media to new. They are way way late in the game. Also they are trying to make the change with old media people like Debow and company at the helm. If you are really serious about becoming new media you bring in new media management. They have not made that step and do not have the balls to do it. This is enough to be the end of the glory days of Gannett. They will not die tomorrow and they may not die ever. But they will not be a true fortune 500 company ever again. They will shrink and shrink till 10 years from now they will be a small media holding company of Hodge podge digital properties. Name one company the size of Gannett that was able to make the changes that they need to make to survive. Maybe GE, maybe ATT. Not many. Going from print newspapers to digital strategy is so much bigger then it seems on "paper" (no pun intended). And it is so much harder when you try to do it with 30,000 buck a year programmers. Chris is the only hope for GCI and rumor has it he is leaving. I wouldn’t blame him one bit. With his talent he could do better elsewhere. Back to my point. If you have made some money in Gannett lately get it out and count yourself lucky. GCI is not a long term bet. Good luck to all.

  14. Digital is a shining star? Maybe on Wall Street or in advertising or marketing. But not in real newsrooms. Digital is killing quality journalism. The web sites are filled with errors, lack of objectivity, dumbed-down graphics, annoying glitches and childish tricks to make one click. When the newspaper people are all gone and not feeding these web sites, will the online people be able to report, edit, write, etc? Will there be any substance on these GCI sites, including USA TODAY? Or will it all be celebrity videos and misleading headlines. And who exactly is going to train these techies on the finer points of journalism, libel, FOI laws and various values that have made the American press the most reliable and objective in the world? I won't sing the praises of digital on mere talk of modest profits or investor speculation. Until I see digital people -- I mean the ones who were raised on the info highway -- paying a little more attention to the quality of the news instead of focusing on the marketing gimmicks, I will not be a fan of consuming news online.

  15. Today GCI closed a swap offer and said about a quarter of $1B in bonds maturing in 2011 and 2012 had been swapped for new notes maturing in 2015 and 2016. That buys time and flexibility. The price? The new notes are 10%, vs 5.75% and 6.375% on the old notes. Still a lot better than the 12-15% money that NYT and McClatchy have been forced to borrow.

  16. 9:46 -- Good points. The best online Web sites are still those produced by the likes of the New York Times. And they're good not because they're flashy but because they contain well-structured, well-reported stories written by New York Times reporters.

    Take that away and I'll never visit them.


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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