Quad/Graphics Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Quad/Graphics (Nasdaq: QUAD  ) rose as much as 10% before closing up 9% on the day. Investors appear to be buying the rebound now that the stock has bounced off Monday's 52-week low.

So what: A mixture of common and Big Money buyers may have driven the gains. Volume closed up 59% with more than 282,000 shares trading hands during the day.

Now what: The timing is also interesting. Quad/Graphics mounted a renewed assault on R.R. Donnelley's (NYSE: RRD  ) interactive print business with new products unveiled during this week's conference of the Direct Marketing Association. Do you believe Quad/Graphics will be successful? Would you buy shares at current prices? Please weigh in using the comments box below.

Interested in more info on Quad Graphics? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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Read/Post Comments (3) | Recommend This Article (0)

Comments from our Foolish Readers

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  • Report this Comment On October 07, 2011, at 12:44 AM, bobbyk1 wrote:

    retired from QUAD in 2010.In my 20 years there only one year we didnt receive stock or cash to our profit sharing plan.After aquiring World Color debt became a problem.Moodys upgraded Quads debt rating twice since then.Plant closings are a positive as they are better utilizing capacity.Quad has the most modern equipment in the industry.They are also appling lean principals to increase productivity.Joel quad asked for 2 years to complete the transistion with World Color.They undertook this transistion under tepid economic conditions.I say give him that[July 2012] and I believe this stock doubles.That of course depends on economy improving.For people that say print is dead I say look in your mail box.Print isnt dead its changing.4% dividend doesnt hurt either.JMHO.

  • Report this Comment On October 07, 2011, at 12:25 PM, isprntover wrote:

    I agree with all that was said in the previous post regarding capacity, lean, etc. The problem as I see it is that the business Quad is in has become a commodity. There is a push on for 'printers' to become marketing service providers, which is what Quad is doing, in order to provide more value added. However, everybody and his brother in the industry is doing the same thing. As such, the MSP value added in of itself becomes a commodity and also risks offending current customers (publishers, agencies, catalog/retailer) who have internal profit centers to handle such tasks. To answer your question, I think the max upside to this stock is in the low twenties. I might consider it for the dividend, but that concerns me also as they declared the dividend almost out of the box when they went public. A company with a credit line of 1.5b, market cap of 800m, not a whole lot of cash, an unfunded stock buy back announcement, and an industry with little chance for growing margins scares me.

  • Report this Comment On October 08, 2011, at 8:01 PM, petrdeep wrote:

    It' like one buggywhip maker taking a 1.5 billion loan to buy a bankrupt buggywhip maker. I look out the window all I see are teenagers walking down the street like zombies staring at their smartphones. This was already a dying industry and Steve Jobs put the pedal to the floor. There will probably (unfortunatly) always be junk mail but mags will go the way of newspapers. Why pay for something you read once and throw away, when the net gives you endless info instantly for free?

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