New Gannett Co Inc (GCI)

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Admittedly, I have made some big mistakes in the media business. My Journal Register pick last year was a disaster. However, I always look forward, never back, and think the pessimism has gotten out of hand. So I'm buying newspaper firm Gannett ( GCI - news - people ) (4, GCI), publisher of USA Today. I am well aware that newspapers are suffering a deep secular decline as advertisers flee traditional media for cheaper, easily measurable advertising on the Web. But remember that a significant amount of the drop has been because of the troubles of automakers and home sellers. When a company with strong franchises like Gannett sells for one times trailing earnings and three times expected 2010 earnings, I step up and swing. In 26 years I cannot remember such an opportunity to invest at historically low levels in companies that are generating cash flow, earnings and real profits.

http://www.forbes.com/free_forbes/2009/0525/122-finance-stocks-securities-patient-investor.html?partner=yahoomag