Archive for March, 2007

In a word: Ouch

March 16, 2007

Wall Street’s reaction to the downward revision in profit outlook was, as usual, swift: GCI slumped big today, falling 4.3% to $55.76. Other newspaper stocks fell as well, but none as much as GCI’s, based on Gannett Blog’s calculations.

One month’s results don’t make a trend. Still, GCI is very much on the hot seat now as investors look for the Seven Desks strategy to start paying off as it nears the May 1 deadline for full implementation across all the newspapers.

Industry analyst Lisa Monaco at Morgan Stanley is cautious on GCI shares due to the weak February results. “Revenues look to be far from reaching some sort of a trough and until we see some indication of stabilization we would steer clear from owning the shares,” she said in a client note, according to this AP story.

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Conn. papers’ final price: $73 million

March 6, 2007

The long-rumored deal, finally announced today, is noteworthy if only because it shows GCI hasn’t completely abandoned adding newspapers to its portfolio.

Here’s where I need Gannett Blog readers’ help: By any available metrics — a multiple of revenue or circulation — how does that $73 million compare to other deals? High? Low? About average? With all the talk about McClatchy’s perhaps overpaying for Knight-Ridder, it would be interested to know whether the sale of the The Advocate in Stamford and the Greenwich Time set new benchmarks.