Hey guys. I'm up 65% on GCI now. Not intending to hold it long term (though I do realize the potential reward). Any ideas as to where it will top out, realistically, in the intermediate term? Any insight is appreciated.
I sold earlier today at 7.15. I actually think there's still plenty of room on the upside in the short term, but I don't often see an 80% return and decided to take it and move on. Good luck to everybody with GCI. It seems to still be severely undervalued.
Points to consider:
1. Forty something cents earnings in one quarter with the economy gone to the dogs suggests shares worth twenty plus bucks, IMO. Imagine the potential for earnings with the economy humming, and consider an expanded PER multiple (potentially big time).
2. Consider how people paid up to ninety bucks for these shares, and fairly recently.
3. Is the Internet really very bad for newspapers? Does it not offer a new avenue, and currently one relatively untapped for Gannett?
Seriously, what is the point of a post like this? There is obviously no right answer. Depends on your portfolio, your risk tolerance and your vision for waht you think will happen with a stock like this. But if you need me to tell you that you obviously should not be investing in any stocks.
Vision is very important. If the story has'nt changed...growing revenues and eps etc., I'm not changing.
Buying and holding these core positions for years has worked for me even through this last melt down. I added to some near the bottom.
ISRG, AAPL, GS, FLS, GCI, APA...I recently sold POT and IVAN to raise money to add to GS and AAPL.
They've served me well because they are powerhouse companies. GCI will prosper with the media sector heating up.
Of course I know there's no right answer. I don't expect anybody to know for sure.
Asking others where they think this will run to in the short term depends on my portfolio and risk tolerance? Umm, no.
And I have my vision of what I think will happen but the point of my asking was to gauge what others think, in order to see if my vision is in line with theirs.
Sometimes the level of idiocy on these boards is shocking.
Based on a "quick-and-dirty" technical analysis comparing GCI to general market levels (S&P 500), GCI has a lot of room left to run for short-termers like you.
For example, the S&P is trading around ranges last seen in Oct/Nov '08. Specifically, during October '08, S&P averaged 969 with a max of 1161 and a min of 849 (all figures based on closing values). Meanwhile, GCI averaged $11.25 with a min of $8.48 and a max of $15.84. So, there's still a lot of room for GCI to move up to keep pace with the general market.
Further, there isn't greater pessimism surrounding GCI now as compared to October. If anything, investors are more optimistic about GCI's future prospects, as the bottom in this economic cycle seems to have been realized. In October, the bottom was a (scary) unknown.