-- stock picker Jim Cramer, in a CNBC Mad Money segment yesterday recommending GCI's stock. Only last April, Cramer gave GCI shares a big thumbs down, when they were trading around $14. So much for that advice; they closed today at $18.05.
A dose of reality
Among 700 newspaper layoffs in June 2011, 26 newsroom staffers canned in Indianapolis; 20 in Nashville; 24 in Louisville, Ky., and Des Moines closes its one-man Washington Bureau.
Score another one for Corporate's P.R. department -- this, on top of that Barron's magazine profile.
ReplyDeleteI would. The guy knows what he is talking about. Thanks for bringing it to my attention. Great way to go into the New Year
ReplyDeleteLove the bit about "more than 500 magazines".
ReplyDeleteCramer also predicted that Obama would carry 49 states.
Massive cuts equal shortterm profits in exchange for a sharp longterm decline in the quality of Gannett's so-called products. The value of high quality information will rise as GCI's credibility fades, undermined by its loss of first-class talent. Cramer once worked at a newspaper, so he should know that you need reporters, editors, photographers, designers, etc. to create a valuable source of info for readers. Most of Gannett's newsrooms, I mean information centers, today can barely keep out a paper let alone high-quality journalism. All boats will rise with the impending Wall Street rally, but don't be fooled. GCI's slash and burn approach is doomed to failure in the long term.
ReplyDeleteWhether he is full of Wall Street beans or not, hard to argue that this isn't good news for the company and a nice way to end a fairly upbeat year all in all.
ReplyDeleteAnd Cramer was so, so right about Bear Sterns. Urged everyone to buy, buy, buy right before it tanked. In response to John Stewart, who eviscerated him on his show after the economic collapse, Cramer said: "We all should have seen it more." He's as slimy as they come, willing to peddle any amount of garbage, knowing full well that he'll rarely get called on anything because he's off pitching something else.
ReplyDeleteYou are spot on. People have short memories when it comes to Cramer's track record.
DeleteAmazing. We conduct one of the most concerted, organized and deliberate reductions-in-force efforts across all of our properties just months ago, with many more quiet layoffs ahead, and now we're spinning our reality as "protecting content and building quality." Well, folks, you wondered if MB earned her salary or not. Here's great proof of corporate messaging.
ReplyDeleteMeh. Quality is one of those 'intangibles', and we already wrote off all the good will we possibly could.
ReplyDeleteWhen's the last time you heard the quality scores for your print site? Do they even bother grading papers any longer?
Cramer: "Bottom Line: ...I believe GCI is one of the only newspaper stocks worth buying in this market."
ReplyDeleteNot exactly unstinting, out-on-a-limb praise. In fact, when you parse it, not exactly even a recommendation — more along the lines of, "it's the kind of thing you'd like if you like that kind of thing."
The real bottom line is that, if even your touts still tout you as a "newspaper stock", then you're looking at an epic PR failure.
I realize circulation is declining, but I'm curious to learn what "new starts" look like for the company's newspaper division with the paywalls etc. Any info out there yet?
ReplyDeleteNot suprised Cramer is a fan, the company has been run as a stock scheme more than as a media company for a couple of decades now.
2:41 not exactly true. If you've watched Cramer he's treated the newspapers like the airlines. DO NOT TOUCH. Here he's rating it as a buy.
ReplyDeleteI would take the advice of my dog before Cramer. Not cutting journalists? How about the 40 percent cut since 2008. Putting it into digital, how about the drop in quality of digital product. This guy is does not know what he is taking about.
ReplyDeleteSept. 20: GCI "needs to fall before Cramer is interested in buying."
ReplyDeleteSince then — barely 90 days ago — the price's down a whopping 24 cents.
Cramer says his about-face on Gannett stock is due partly to Larry Kramer's hiring in May as publisher of USA Today. (Note: Their last names are spelled differently, and they are not related.)
ReplyDeleteCramer also makes clear that he regards Kramer as a friend.
"(Note: Their last names are spelled differently, and they are not related.)"
DeleteThanks for pointing out the amazingly obvious.
You'd be amazed at what people miss on their own.
DeleteCramer must have been a shiitty reporter back in the day, where he started his career after college pre-goldman sachs. He needs to get his facts straight. You also have to wonder what he would say about usa today's latest reorg, which did not add 1 extra reporter but managed to recycle a dozen has beens into managing editors and executive editors. What does thst do, exactly?
ReplyDeleteAnd to think Cramer trashed Gannett stock in March. Looks like the good old white boys like to keep scratching each others backs and blue balls.
ReplyDeleteParts of his analysis were far too flowery and, yeah, he didn't exactly have all his facts straight, but to say there is nothing to what he said belies the reality.
ReplyDeleteThe point is there's little or nothing that doesn't merely parrot management. That doesn't make it untrue, but it does make it unoriginal. Nor does it explain what exactly has come to light since September to justify reversing his call.
DeleteYou guys just hate this don't you. Well my 401k went up this week. Thanks Cramer!!!!
ReplyDeleteThey hate the rise in the stock price. Another of Jim's failings -- and there are many -- is that he has not been able to manipulate the stock price, despite many attempts. This eats at him often.
DeleteRegardless of what you think of GCI, anybody who holds company stock in a 401(k) post-Enron is nuts.
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DeleteHas anyone heard of potential layoffs and buyouts forthcoming in 2013? It seems to be somewhat of a yearly trend. I may be wrong, but it certainly feels that way. I am speaking more in the newspaper publishing division since it seems to be more vulnerable to modern technology.
ReplyDeleteI would have shit if he mentioned DealChicken.
ReplyDelete