Gannett's Digital Transformation Remains On Track

Nov. 02, 2022 12:50 PM ETGannett Co., Inc. (GCI) StockNYT, GCI53 Comments

Summary

  • The digital transformation of Gannett over the past three years continues, yet its stock price reflects none of the progress.
  • The pandemic-induced recession in 2020 and surge in inflation during 2022 were both major headwinds for progress.
  • Management continues to respond with steps that are putting the company back on track.
  • Look at the transformation of the New York Times over the past ten years as a roadmap for where Gannett is headed.
  • The stock is cheaper today than it was at the depths of the pandemic and bear market in 2020.
  • This idea was discussed in more depth with members of my private investing community, The Portfolio Architect. Learn More »

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In the three years since New Media investment Group acquired Gannett (NYSE:GCI) to form the largest newspaper company in the country, retaining the Gannett name, the combined enterprise has lost 78% of its market value. The share price has fallen from $6.70 to $1.44. Therein lies

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Lawrence Fuller has been managing portfolios for individual investors for 30 years, starting his career at Merrill Lynch in 1993 and working in the same capacity with several other Wall Street firms before realizing his long-term goal of complete independence when he founded Fuller Asset Management. He also manages the Focused Growth portfolio on the new fintech platform called Dub, which is the first copy-trading platform approved by securities regulators in the US, allowing retail investors to copy the portfolio and ongoing trades of the manager they choose automatically. You can also find him on Substack and lawrencefuller.substack.com.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of GCI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Lawrence Fuller is the Managing Director of Fuller Asset Management, a Registered Investment Adviser. This post is for informational purposes only. There are risks involved with investing including loss of principal. Lawrence Fuller makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by him or Fuller Asset Management. There is no guarantee that the goals of the strategies discussed by will be met. Information or opinions expressed may change without notice, and should not be considered recommendations to buy or sell any particular security.

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