Good News for Gannett
It's been nice to see newspaper publisher Gannett Co. (GCI) showing a little life lately. In fact, shares are up more than 50% since late September, but I'm not jumping for joy because of that move. The stock is still down more than 13% year to date, and is viewed by many as a "buggy whip" -- a reference to an industry that died when automobiles became the preferred method of transportation, displacing horse-drawn buggies and, ostensibly, the whip used to keep horses moving.
The newspaper business is apparently going the same way, which puts Gannett in extinction mode. I know of one well-known investment newsletter that has Gannett listed with a few other companies under the category of "Victims," with a description of "obsolete." That sentiment is the reason the company trades at 6x trailing earnings; 4x enterprise value to earnings before interest, taxes, depreciation and amortization; and 6x 2012 consensus earnings estimates....344 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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