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reddingrunner (95.03)

Today's Hot Tip: GCI

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December 11, 2013 – Comments (0) | RELATED TICKERS: GCI

There's not much to my local paper. There just isn't much that happens here on a daily basis that's worth following.  The same seems to be true in most cities I visit, even big ones like San Diego.  But if you want local news there's no where else to go.  You pay a buck for a couple local stories and a rehash of national news that you already knew about.

So I often wondered (for many, many years): Why doesn't USA Today offer these locals a condensed version of USA Today which could be combined with the local paper- thus covering national news and local with more depth than either can provide.  I wouldn't pay $2 a day to buy both but I'd pay a buck a day to buy the combination. 

Today Gannett announced that they are going to do this very thing.  Speculative indeed, I don't usually buy stocks this way: I'm a quant guy and GCI's quants are very average though the dividend is nice.

But I think this is significant and can create some major long-term growth for GCI (note: GCI is more than just USA Today).  I think this is the future of newspapers (and no, they aren't dead, just ask Mr Buffett). Mr Market initially agrees, the stock is already popping since the announcement this morning.  

If you agree, act quickly, then hold on for a year or two and see how it plays out as more papers are added.  Maybe this will fizzle.  But it could be big.  Really big.

Your thoughts? 

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