With the notable exception of New York Times Co. shares -- rallying for a second consecutive day -- newspaper stocks are down across the board today, as the overall market tumbles amid heightened tension on the Korean Peninsula.
Gannett's stock recently traded for $12.61 a share, down 29 cents, or 2.3%. The S&P 500 index, a broad measure of stock market activity, is down 1.5%. The Dow Jones Industrial Average is off 1.4%.
GCI's tumble also follows high-profile stock picker Jim Cramer's advice yesterday, urging investors to sell the company's shares -- along with those of other newspaper publishers. Watch the exchange during a viewer call-in, where Cramer talks with an Idaho investor, starting about minute 0:55.
I sold every last penny of GCI a long time ago, but if Cramer's saying sell, it's probably a buy. This is the guy who thought the housing bubble would never burst - not exactly the sharpest pencil in the cup.
ReplyDeleteI can only watch Cramer once a month, or I start throwing things at the TV. He usually gives some sort of glib explanation for his views, but didn't in this case. It doesn't take a university degree to see that newspapers are on their uppers and the prevailing opinion on Wall Street is down on GCI. If you are still investing in the company stock, you need to take those opinions into account.
ReplyDeleteCramer's the same guy who, when CGI was down to a couple bucks, said sell, drop it, forget it, it's never coming back.
ReplyDeleteSo he cost many a four to five-fold profit.
Not saying he's wrong this time, but...
Like it or not, Crammer’s right….Newsprint prices projected to go up 20% in 2011, gasoline per gallon up nearly 8% more. ABC’s rule tightening will further exacerbate circulation declines. And 2010’s political revenue will not be easily replaced, if at all. Just a few of the issues placing added pressure on Gannett’s ability to meet its profits; likely resulting in more knee-jerk cuts like a few weeks ago. And short of an epiphany resulting in sizeable, sustainable revenue gains quickly, other cuts will likely follow.
ReplyDeleteI'd sell if I could get logged into the new benefits website. User name and password they sent me is not working.
ReplyDeleteCramer's an idiot. I probably bought four stocks on this Harvard moron's recommendation and they all went south. I've watched him wax on others that have also slumped. A one out of 6 batting average doesn't cut it in baseball or Wall Street. I'm not a Gannett booster. But a strong fourth quarter and improving economy next year will, at the minimum, stabilize the downside and push it up to $14 or $15. Maybe $16. Then you should unload it out of the 401K.
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