Gannett Stock Upgraded To “Buy” From “Hold”

by Robert Quigley | 5:48 pm, December 14th, 2009

» 1 comment

A glimmer of sunshine for the newspaper industry, or a validation of its worst practices? Newspaper giant Gannett’s stock was upgraded to “buy” from “hold” by an equity research firm.

The rating change didn’t come out of any great zeal for Web 2.0 innovation (see: the website for the Arizona Republic, its second-biggest paper), but because of Gannett’s notorious — but apparently successful — cost-cutting measures.

In July, Gannett confirmed the firings of more than 1,400 employees.

From Fitz & Jen:

Benchmark Co. upgraded its rating of Gannett Co. stock (NYSE: GCI) to “buy” from “hold” Monday, saying it’s impressed with cost-cutting and management at the nation’s largest newspaper publisher. Benchmark said the move follows Gannett’s upbeat dog-and-pony at the UBS conference with television strengthening and newspapers performing better than expected.

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http://www.sailrabbits.com Magister

Stock recommendations are based upon the possibility of profit or reduced losses. They aren’t a reward for theoretical ingenuity or abstract morality. They are based entirely on the potential return on investment and though something may show promise for the future, cost-cutting is proven to effect the here and now.