Gannett's stock closed yesterday at $20.04 a share, up 20 cents. That was the first time shares ended the day above $20 since Aug. 15, 2008, when they closed at $20.65, according to Google Finance.
It was a momentous month, heading for a terrible fall. Two days before, Corporate shocked the company by announcing 600 layoffs, the first of a wave that would eventually claim more more than 20,000 jobs.
In September, Wall Street giant Lehman Brothers imploded, and the U.S. economy tipped into the Great Recession. GCI fell below $2 a share the following March, before beginning the long, painful return to yesterday's milestone.
GCI's advance came as investors look ahead to Feb. 4, when Corporate is scheduled to release fourth-quarter financial results.
It was a momentous month, heading for a terrible fall. Two days before, Corporate shocked the company by announcing 600 layoffs, the first of a wave that would eventually claim more more than 20,000 jobs.
In September, Wall Street giant Lehman Brothers imploded, and the U.S. economy tipped into the Great Recession. GCI fell below $2 a share the following March, before beginning the long, painful return to yesterday's milestone.
GCI's advance came as investors look ahead to Feb. 4, when Corporate is scheduled to release fourth-quarter financial results.
In hindsight, the last obviously best time to buy Gannett stock was the day Craig Dubow retired as CEO for medical reasons: Oct. 6, 2011.
ReplyDeleteThat day, when Gracia Martore was promoted to CEO, GCI closed at $10.45 a share.
Sold my little chunk at $29 in Spring '08 and never looked back. Good riddance.
ReplyDeleteSold my Gannett stock back in 2007 at about $60 per share. I invested it wisely, and it's now earning me a lot of money -- much more than if I would have kept my stock. The only reason to keep Gannett stock these days is for short-term gains. We'll never see Gannett reach the high stock price of about $90 per share. Never.
ReplyDeleteTruly puzzling. The revenues continue to decline, and so do the products. Why are those reasons cause for a stock's value to increase?
ReplyDeleteThe (print) assets are worth more than the ongoing business. The market anticipates the company splitting the broadcast from the print.
DeleteAlso, even as revenue declines, so do costs. As long as the cost cuts keep pace with the revenue drop, the business is healthy and profitable. That's what Wall Street sees.
That, and a very nice dividend. You don't have to like it to understand it.
Also, the market trend has been up for quite awhile. When the Dow drops 10% or 20%, then watch GCI stock. Does it fall harder than the Dow, or less? That will give you a good idea of how investors really value GCI.