tag:blogger.com,1999:blog-2080506270244832638.post1082856192219556317..comments2024-03-28T07:17:13.573-05:00Comments on Clark Street Value: Gannett: Familiar Publishing Spin PlaybookMDChttp://www.blogger.com/profile/10679835609782815537noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2080506270244832638.post-39325036927931892832015-05-24T22:50:12.111-05:002015-05-24T22:50:12.111-05:00I'm a bit concerned about all the insider sell...I'm a bit concerned about all the insider selling. The CEO sold most of her shares a couple of weeks ago. Will continue to monitor. Jimhttps://www.blogger.com/profile/06973763424450222215noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-7829208387885303442015-05-21T09:29:24.149-05:002015-05-21T09:29:24.149-05:00I'm going to steal a bit from the Horizon Kine...I'm going to steal a bit from the Horizon Kinetics paper - yes, but in a longer term reversion to the mean, likely not a predictable short term bounce type trade. Publishing businesses decline have been somewhat hidden within larger media companies and their low-to-negative profit margins are much lower than the broadcasting units. Once set out on their own with management incentives directly linked to the headwinds facing business, the classic spinoff thesis would assume improved business results (in the case of publishing companies, monetizing digital and underinvesting in print). But that's a long term story. <br /><br />I bought calls over shares to hopefully profit from any spinoff excitement, and since TEGNA is the more attractive and larger piece of the pie, any jump in valuation there should hopefully offset a selloff in the new Gannett. After the spin, reassess and potentially the new Gannett becomes cheap enough to buy outright, however you mention JMG, I believe that might be bought by Gannett, would fit nicely into their portfolio of both mid-sized market papers (Milwaukee Journal Sentinel) and the "bakers dozen" of community papers from Scripps.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-60094698686686860022015-05-21T01:24:57.083-05:002015-05-21T01:24:57.083-05:00Do you see any potential reversion-to-the-mean tra...Do you see any potential reversion-to-the-mean trade with publishing assets in general (GCI post-spin or JMG)? It seems that there is a general hatred towards the publishing assets (and rightly so given their horrible profitability/growth relative to the digital/broadcasting segments), but with new management focusing purely on these businesses, there could be a nice longer term value play....especially with any sort of quick sell-off post-spin. Thoughts?Anonymoushttps://www.blogger.com/profile/08837957136648216514noreply@blogger.com