Why Gannett Is Ready to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, newspaper publisher Gannett (NYSE: GCI  ) has received an alarming one-star ranking.

With that in mind, let's take a closer look at Gannett and see what CAPS investors are saying about the stock right now.

Gannett facts

   

Headquarters (founded)

McLean, Va. (1906)

Market Cap

$4.4 billion

Industry

Publishing

Trailing-12-Month Revenue

$5.2 billion

Management

CEO Craig Dubow (since 2005)
CFO Victoria Harker (since 2012)

Return on Equity
(average, past 3 years)

23.2%

Cash/Debt

$237.5 million / $1.6 billion

Dividend Yield

4.3%

Competitors

The McClatchy Company (NYSE: MNI  )
New York Times
(NYSE: NYT  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 27% of the 443 members who have rated Gannett believe the stock will underperform the S&P 500 going forward.

Earlier today, one of those Fools, tutnyce, succinctly summed up the Gannett bear case for our community:

Holding company with too many second rate brands and not enough synergies between them. No growth in revenue or profits on the horizon, as most of the cost savings from newspaper cuts have already gone into effect. Not the worst play with a 4% dividend, but even that's not enough for me to put my money at risk.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 22, 2012, at 11:56 AM, Swansonaz wrote:

    This article is so inaccurate about Gannett. First off you have the wrong CEO listed the current CEO is Gracia Martore. Second they are not a Publishing Co they are Media Co with about 30 television stations and hundreds of media web sites and apps including Deal Chicken which is beginning to rival Groupon in some markets.

    Second rate brands... Uhh USA Today... Sounds First rate to me!

    Recently Jim Cramer just boasted about why Gannett is a strong buy, look it up. At least he checks his facts more than I can say for the writer of this article.

    I own Gannett Stock and plan to buy more.

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