Hot Media Stocks To Invest In Right Now: Gannett Co. Inc. (GCI)
Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. daily newspapers with affiliated online sites, including USA TODAY, a national, general-interest daily newspaper; USATODAY.com; USA WEEKEND, a magazine supplement for newspapers; Clipper Magazine, a direct mail advertising magazine; bi-weekly Nursing Spectrum and NurseWeek periodicals; and military and defense newspapers. This segment also includes 17 paid-for daily newspapers; approximately 200 weekly newspapers, magazines, and trade publications; and approximately 600 non-daily publications, as well as involves in commercial printing, newswire, marketing, and data services operations. The company?s Digital segment owns and operates CareerBuilder, an employment Web site, which offers online recruitment and career advancement services for employers, employees, recruiters, and job seekers; ShopLocal, which provides multicha nnel shopping and advertising services; Planet Discover, which offers hosted search and advertising services; PointRoll, which provides digital marketing services and technology; and Schedule Star, which offers scheduling solution for high school athletic departments. Its Broadcasting segment operates 23 television stations and affiliated Web sites, which produce local programming, such as news, sports, and entertainment programming. This segment also includes Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and select hotel lobbies in North America. The company has strategic business relationships with online affiliates, including Classified Ventures, ShopLocal.com, Topix, and Metromix LLC, as well as strategic marketing agreement with Microsoft. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia.
! Advisors' Opinion:- [By Tiernan Ray]
FBR & Co.‘sWilliam Bird, who follows the shares of old media dinosaursGannett (GCI), Meredith(MDP),News(NWSA), andThe New York Times(NYT), today offers the findings of a survey of 2,041 adults in the U.S. from March 12th to March 17th.
Bird has an Outperform rating on shares of Gannett, and Market Perform ratings on the other three names.
The upshot of the survey is that a third of young readers don’t read print papers, and are more and more flocking to online news outlets.
The survey, conducted with the help of Clear Voice Research LLC, suggests to Bird a “steady structural pressure on print, a tip of the spear demographic problem for print circulation, and slow magazine tablet adoptiona negative as tablets offer a better business model for magazines.”
More specifically, there is “value destruction” as more and more people trade from print to digital editioins of publications:
The survey suggests that structural pressure on consumer newspaper readership is a touch abovethat of magazines. Over the next year, print newspaper usage is expected to decline a net 5% (i.e.,6% expect to use more versus 11% who expect to use less). A total of 11% of respondents said they plan to use print newspapers less and 10% said they plan to use print magazines less. This was exactly offset by the percentage of respondents who said theyplan to consume online newspapers more (11%) and those who plan to consume online magazinesmore (10%). With $1 of print ad spend translating to $0.25 in digital, these results are supportive of continued print-to-digital value destruction.
Younger readers tend to be more inclined to dump print, says FBR:
According to our survey, intended print newspaper subscription cancellations total 9.8% over the next 12 months. Notable is that plans to cancel skew heavily toward the below 35 year old demographic. The 18 to 34 demographic reflects
- [By Rich Duprey]
Here's something no one ever said: We don't see enough daily sports coverage, so we need a new website dedicated to cover it.Yet USA Today, theGannett (NYSE: GCI ) newspaper dedicated to giving you national news in bite-size snippets and graphics, is launching a new website dedicated to just that. Calling it "For The Win," it expects the new division to attract fans inside and out of sports.
- [By Sue Chang and Saumya Vaishampayan]
Gannett Co. (GCI) shares shed 2.8%. USA Today on Monday said it reached a content and technology partnership with CineSport that will provide a video-technology platform as well as create video content.
Gannett (NYSE: GCI ) will release its quarterly report next Monday, and investors are unusually enthusiastic about the company's prospects. Although a big acquisition raised awareness of Gannett's businesses outside the struggling newspaper industry, it's still unclear how much of a boost it will produce for Gannett earnings growth in the future.
source from Top Penny Stocks For 2015:http://www.topstocksforum.com/hot-media-stocks-to-invest-in-right-now.html
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