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Chasing Value: Gannett as value play - not for me

A few days ago I received the following inquiry from a frequent reader of my blogs on Chasing Value.

    Hi Sheldon, what do you think about: Gannett Company (NYSE: GCI)

    P/S - 1.72, P/B - 1.65, P/cash - 9.9, dividend - 2.1%, P/E - 12.4

    Publishing sector - quite hot at the moment? ...alex

Alex , you are developing a pretty good understanding of the numbers I look at. Now you should add something else to your calculations. The actual business it is in. When we look at American Home Mortgage Investment (NYSE: AHM) (see Someone asked about Amercian Home Mortgage) or IndyMac Bancorp (NYSE: IMB) (see Chasing Value: IndyMac Bancorp - once in a lifetime,) or many other fallen banks and mortgage companies, we can be confident they will bounce back if they survive the lows. There will always be banks.

Continue reading Chasing Value: Gannett as value play - not for me

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Last updated: November 12, 2009: 01:50 AM

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