Gannett Co., Inc. (GCI)

TMFDeej (99.62) Submitted: 7/27/08 4:21 PM : Start Price: $17.36 GCI Score: -18.48

Gannett (GCI)

Gannett owns a number of newspapers and television stations in the United States and the United Kingdom, including the major national publication USA Today. GCI has been pounded by investors, dropping 54% so far this year after sliding 35% in 2007. I know that everyone hates newspapers and that it is supposedly a dying industry, but this stock is about as cheap as it gets, trading at only 6 times its estimated 2008 earnings and around half its stated book value. The company currently pays a 9% dividend that it should be easily able to cover. I realize that times are different today and that the Internet is eating away at the newspaper business, but when I look at Gannett I can't stop thinking about Warren Buffett's famous investment in the Washington Post years ago.

Deej

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