The San Diego, Calif.-based money manager said it owned just 1,045 shares as of Dec. 31, according to the filing with the U.S. Securities and Exchange Commission. In its last such regulatory notice, Brandes told the SEC that it owned 22.6 million shares, as of March 31, 2009. That was equal to 9.9% of all Gannett's stock at the time, according to the document.Today's filing does not disclose the timing of the sale, and it doesn't give prices. Gannett's stock ranged from $2.20 to $15.63 a share between March 31 and Dec. 31, according to Google Finance.
Whatever the sale terms, Brandes' move suggests the company believes GCI's stock won't rise higher anytime soon. Indeed, Gannett shares have fallen 17% since their recent peak of $17.27 in mid-January. The stock closed today at $14.29.
The enormous sale doesn't mean Brandes profited on its investment, however -- even at the highest trading price during the sale period. The company first emerged as Gannett's then-top stockholder in November 2007, when it told the SEC that it owned 26.2 million shares. At that time, Gannett stock was trading for about $42 a share.
The Brandes filing today came shortly after Gannett's top stockholder, Ariel Investments of Chicago, said it had trimmed its holdings by nearly three million shares between Oct. 31 and Dec. 31. Ariel owned 6.3% of GCI's stock at Dec. 31, the filing says.
I'm not sure what to make of this.
ReplyDeleteAbsent more information, the most I can speculate is this:
ReplyDeleteWhatever the sale terms, Brandes' move suggests the company believes GCI's stock won't rise higher anytime soon. Indeed, Gannett shares have fallen 17% since their recent peak of $17.27 in mid-January. The stock closed today at $14.29.
In the past, Brandes and Gannett have not responded to questions about these stock sales.
Even after the recent sell-off driven by a very nervous overall market, the stock is up over 40% since mid-December. Without knowing the timing on this, it is very difficult to say much meaningful about it. The thing about going-up quick (which GCI certainly has, not just since March, but since December) is that when investors get nervous, and are taking losses elsewhere in their portfolio, many of them are going to tend to ring the cash register on the profits they do have.
ReplyDeleteOn the timing, doesn't it seem likely that Brandes sold during the fourth quarter? If it had sold earlier than that -- in the third quarter, for example -- why would it wait until now to notify the SEC?
ReplyDeleteRe the timing, that does seem reasonable, Jim. Looking at the GCI chart, both price and volume, 10/21 to 11/02 would be the prime candidate. I tend to doubt they could have moved that much volume in the post-Dec 3 runup without significantly blunting that rally. Tho if they did, then bully on them. . .
ReplyDeleteBtw, I just saw an article elsewhere that suggested that Brandes began buying GCI at $53-58. Ouuuuuuch. http://www.sandiegoreader.com/weblogs/financial-crime-politics/2009/jan/20/brandes-investment-partners-still-underperforming-/
ReplyDeleteOne could wonder at funding redemptions being an issue for them too.
Here's a glimpse at what Brandes may have paid for some of its shares:
ReplyDeleteIn 2007, it added 11 million shares between March 2 and Oct. 31, to a total 26.2 million shares. During that same period, Gannett's stock fell from $60 to about $42 a share.