Johannes Salim, CFA
CFA, long/short equity, hedge fund manager

Gannett: Compelling Risk Reward Due To Overblown Regulatory Risk

As part of my research venture into out-of-favor sector to find under-valued stocks, I took a close look at Gannett (NYSE:GCI), a leading local publishing & broadcasting player. As I conducted my research, what first intrigued me was that Gannett trades at a whopping 12-13% FCF yield (2014-15). This points to significant under-valuation, suffice to say. In short, having investigated its company fundamental, I am fully convinced that Gannett presents a compelling risk-reward ratio (a minimum 5 to 1 upside-to-downside ratio) mainly due to overblown regulatory risk. Without further ado, here is the overlooked story of Gannett.

Strategic business transformation

On 23 Dec 2013, Gannett completed the acquisition of Belo Corp, an owner and operator of 20 television...

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