GCI
Gannett Co. Inc.
TMT, Event Driven/Special Sit
05/06/2013
Presented
| Date | 05/02/2013 |
| Price | $19.94 |
| Market Cap | $4.58B |
| Ent Value | $6.03B |
| P/E Ratio | 7.52x |
| Book Value | $14.36 |
| Div Yield | 2.3% |
| Shares O/S | 229.47M |
| Ave Daily Vol | 2,860,000 |
| Short Int | 10.63% |
Current
| Price | $5.74 |
| Market Cap | $0.85B |
| Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. It operates through three segments: Publishing, Digital, and Broadcasting. The Publishing Segment operates 82 U.S. daily publications with affiliated online sites, including USA TODAY, a national, general-interest daily publication; USATODAY.com; USA WEEKEND, a magazine supplement for publishing companies; Clipper magazine, a direct mail advertising magazine; magazines for nurses and allied health professionals; and military and defense publications. It also operates 17 paid-for daily publications; approximately 200 weekly publications, magazines, and trade publications; and 480 non-daily publications for commercial printing and various smaller businesses. In addition, this segment engages in commercial printing, newswire, marketing, and data services operations. The Digital segment operates CareerBuilder.com, an online job site to help companies target, attract, and retain talent; PointRoll, which provides multi-screen digital advertising and technology services; ShopLocal that offers multichannel shopping and advertising services; and Reviewed.com, a group of product review Web sites that provide comparative reviews of technology and household products and services. The Broadcasting segment operates 23 television stations and affiliated online sites, which offer news, entertainment, and advertising content; and Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and hotel lobbies in North America. The company has strategic business relationships with CareerBuilder, LLC; Classified Ventures; ShopLocal.com; and Topix. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia. |
Highlights
The presenter believes the recent run for Gannett’s (GCI) shares – up 46% over the past year - may be over; he is bearish on the outlook for the company based on a number of recent issues and aggressive, backward-looking Street earnings expectations. He believes GCI could earn materially less per-share than the Street is expecting in 2013 and ’14, and explained his rationale and price objective as follows:
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