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Apr 6, 2020

Speaking of Newspapers....


     Among the other newspapers that used to be sold everywhere in machines was The Montgomery Advertiser, owned by Gannett.

     But the future of the local paper, and others owned by the same company, looks grim....consider this item from the Seeking Alpha investment website:

Gannett bull bails out with Street-low target

|About: Gannett Co., Inc. (GCI)|By: , SA News Editor
Gannett's (NYSE:GCI) last bull has thrown in the towel, as Citi downgrades the newspaper stock two notches to Sell, from Buy.
That's due to pandemic-driven weakness in advertising, a downturn the bank expects to be "deep" and prolonged.

     The company has been laying off employees, with some positions being outsourced to Mumbai, India.

"क्या आप मुझे बता सकते हैं कि अलबामा कैपिटल बिल्डिंग कहां है?"*
 
*"Can you tell me where the Alabama Capitol Building is?" 
 
BUT...The Motley Fool website sees an opportunity to buy here:
 
"Investing in Gannett is undoubtedly a risky move. The company has a ton of debt; revenue has been declining; and the company needs to show it can generate more digital subscriptions. Still, becoming the largest newspaper publisher in the U.S. with reputable news brands gives Gannett a certain amount of positive momentum. It may not be what's best for journalism, but from a business standpoint, adding scale makes sense.
Don't dedicate a large chunk of your portfolio to this stock, but it's definitely worth a small position at these beaten down prices."
 
 

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