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Gannett Co., Inc. (GCI) Message Board

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  • gnik4luap gnik4luap Feb 4, 2009 7:20 AM Flag

    GCI selling at 2.5X earnings....

    Wouldn't GCI be able to buy back their debt on the open market at 50-80 cents on the dollar on the balance sheet if they are downgraded to junk?

    That would be a GREAT move for shareholders!

    They could cut the dividend and buy back half their debt and half their common shares with the cash flows coming in 2009-2010.

    EPS in the next economic upturn would likely jump into the $5-$6 range, which means you are now buying this blue-chip media asset at 1 times earnings, not its usual 15-25 times earnings!

    Only idiots are still short this company.

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    • You barely saw $5 per share earnings even when the prefered print model was uncontested. To think that now is no different than a trip to fantasyland.

      Being a Digital Provider will not get you there because it can not replace the lost circulation revenue --- the internet is free -- subscriptions to newspapers are not.

      As far as buying back the junked debt --- the reason why it would be junk would preclude your buying it back. You wind up again trying to do fire sales on assets to make your balance sheet conform to what a "digital provider" balance sheet looks like.

    • Hey, who're you calling an idiot?!

13.81Jun 30 4:04 PMEDT