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Call me crazy

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Annual Report of Employee Stock Plans (11-k) Edgar (US Regulatory) - 6/14/2019 12:44:17 PM
USA TODAY NETWORK and the Gannett Foundation Announce 2019 National Grant Recipients for “A Community Thrives” Business Wire - 6/11/2019 11:20:00 AM
Amended Statement of Beneficial Ownership (sc 13d/a) Edgar (US Regulatory) - 5/22/2019 5:22:10 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 5/21/2019 4:36:46 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/20/2019 7:45:43 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/20/2019 7:44:47 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/20/2019 7:43:52 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/20/2019 7:42:32 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/20/2019 7:41:41 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/20/2019 7:40:33 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/20/2019 7:39:47 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/20/2019 7:39:17 PM
Gannett Shareholders Elect All Eight Gannett Directors at 2019 Annual Meeting Based on Preliminary Results Business Wire - 5/16/2019 9:16:00 AM
MNG Enterprises Comments on Initial Voting Results of Gannett Annual Meeting Business Wire - 5/16/2019 8:59:00 AM
Additional Proxy Soliciting Materials (definitive) (defa14a) Edgar (US Regulatory) - 5/14/2019 5:07:43 PM
Additional Proxy Soliciting Materials - Non-management (definitive) (dfan14a) Edgar (US Regulatory) - 5/14/2019 5:06:17 PM
MNG Sends Open Letter to Gannett Shareholders Business Wire - 5/14/2019 10:12:00 AM
Additional Proxy Soliciting Materials (definitive) (defa14a) Edgar (US Regulatory) - 5/13/2019 5:10:43 PM
Gannett Reminds Shareholders to Vote “FOR ALL” of Its Eight Nominees on The WHITE Proxy Card Ahead of the Upcoming May 16... Business Wire - 5/13/2019 8:00:00 AM
Additional Proxy Soliciting Materials (definitive) (defa14a) Edgar (US Regulatory) - 5/13/2019 6:09:09 AM
Additional Proxy Soliciting Materials - Non-management (definitive) (dfan14a) Edgar (US Regulatory) - 5/10/2019 5:27:18 PM
Additional Proxy Soliciting Materials (definitive) (defa14a) Edgar (US Regulatory) - 5/10/2019 5:14:12 PM
MNG Urges Gannett Shareholders to Vote for Change Business Wire - 5/9/2019 6:05:00 PM
Additional Proxy Soliciting Materials - Non-management (definitive) (dfan14a) Edgar (US Regulatory) - 5/9/2019 5:20:37 PM
Additional Proxy Soliciting Materials (definitive) (defa14a) Edgar (US Regulatory) - 5/9/2019 2:37:18 PM
MWM Member Level  Friday, 05/22/09 11:36:06 AM
Re: None
Post # of 382 
Call me crazy
I might be completely off my rocker with this one, but Gannett could be an interesting opportunity for adventurous investors seeking a contrarian bonanza.

Earlier this year, my Foolish colleague John Rosevear challenged investors to ignore the noise around General Motors (NYSE: GM) and take a closer look at Ford (NYSE: F). He suggested that a best-of-breed company in an otherwise pitiful industry can produce a compelling risk-reward situation. Ford shares tripled in value soon afterwards, so he was surely on to something.

Gannett is a similar story. The newspaper industry is a sad, sad, relic reminiscent of a walking dead man. Yet Gannett's relatively diverse business model and niche spot with USA Today, still in demand at hotels, has left it profitable. Furthermore, its debt, although frighteningly heavy, appears to be stable. As CAPS member HeloJim writes:

The bad news is out. The credit rating has been downgraded to junk territory, the dividend has been cut, we know the industry has been in decline, [ad] revenues have been killed, the internet has stolen customers and the company took huge write-downs of goodwill in 2008. Everyone sees that.

With all that, this company is still profitable. Their debt structure is stable, competitors are teetering on the brink and cost reduction efforts are improving margins. As the recession ends and add revenues start returning, their profits will look very attractive. … Their TV stations have held up fine during the recession and they've done a good job developing their online business. Management has also prioritized debt retirement so don't expect the dividend to return, but as debt is reduced this stock will get noticed.

The upside here is that shares currently trade at just over three times forward earnings. If management can successfully finagle its debt and ride out the recession, investors are looking at an insanely undervalued stock. If not, well, all bets are off. This one ain't for the wusses.
http://www.fool.com/investing/general/2009/05/22/3-ridiculously-cheap-high-quality-companies.aspx

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