Some key stock numbers over the years:
$1.85
all-time trading low, set March 10, 2009, during
the depths of the Great Recession
the depths of the Great Recession
$8.28
lowest trading price during past year: set Sept. 22, 2011
$16.33
highest trading price for the past year, also set today
$91.38
all-time trading high, set April 2, 2004
[Illustration: A Gannett stock certificate; data: Google Finance]
This ratty stock sells for a multiple of 9, which tells you that the smart money considers the stock a risky bet. GCI has benefited from the rising tide of a resurgent stock market. To an unknown extent, the stock has risen on speculation that a Warren Buffett will buy some Gannett newspapers or that Gannett will put them up for sale (as it should have done in the early 2000s at their peak value.) It's no feat that GCI has hit a 52-week high; 332 stocks on the NYSE and NASDAQ did so today. What's more important is that the S&P 500 is back where it was at the start of 2007, whereas GCI is still down more than 60 percent.
ReplyDeleteThis post does a far better job than most of finding bad news within the good. Congratulations. FYI: I own a boatload at $4.05 and the current annual dividend payout of 80 cents hives me nearly a 20 yield on that $4.05 per stub price. So, you see, it all depends.
ReplyDeleteI should have written "...gives me nearly a 20 percent yield on that $4.05 per stub price." Haste makes waste -- in typing as well as financial thinking, heh heh.
ReplyDelete6:05 You own it at $16.30, although your basis is far lower.
ReplyDeleteTrue dat. But even at today's "inflated" price $0.80 / $16.30 = 4.9 percent annual yield. So how much is your money market paying?
ReplyDeleteI'll give way now so some official from one of GCI's union shops can tell me that I'm evil. Jay-zus -- is that Pete Seeger's banjo I hear in the background?
this says it all:
ReplyDeletehttp://www.youtube.com/watch?v=S8H2FIf1oH4
Your sarcasm, 7:03, will come back to bit you. Newspaper/news organization stocks will never recover to anything like they were before 2008. The business is done. Over. The digital future pays dimes. Maybe.
ReplyDeleteYour yield is zero unless you sell.
ReplyDeleteYour yield is the rate of return on the dividend. Or what production you get per acre from your crop.
ReplyDeleteNet profit is what you get from selling shares.