This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

I'd Still Rather Own Gannett Than Facebook

Stocks in this article: GCI FB BLC

NEW YORK ( TheStreet) -- Back in September, I went out on a limb in a column entitled I'd Rather Own Gannett Than Facebook. It was the type of piece that was a bit controversial at the time, because it suggested that the dinosaur was a better buy than the slick, newly public, must-own behemoth.

I don't mind being a contrarian, because that's part of what comes along with being a value investor. I also don't mind being wrong, because that comes with the territory, too. But in this case, so far anyway, the sentiments in that piece have demonstrated an important investment lesson.

In the eight months since that column ran, Gannett (GCI) has performed extremely well, with shares up about 52%, while Facebook (FB) is up about 19%. Granted, 19% in nothing to sneeze at, especially given that the S&P 500 is up about 12.5% during the same period. But Gannett has been the winner here, so far anyway, which may be ironic to many. GCI Chart GCI data by YCharts
Chances are, that you have more likely logged into Facebook in the past 24 hours than you have read a copy of USA Today, or any of the other Gannett-owned newspapers. Let's face it -- Facebook is still a somewhat shiny new object, used by millions. Some seemingly log every event of their day for all to see, quite annoying, I might add, and are practically addicted to it. That level of awareness and buzz is something that Gannett cannot claim. While Facebook has grabbed the headlines, Gannett has quietly gone about its business, successfully resurrecting a company that looked like it might go under just four years ago.

The investment lesson here is all about expectations. Little has been expected of Gannett, and the company has flown under the radar, paying down debt, raising its dividend, buying back shares, and delivering some very good results since 2009. What has long been seen as a newspaper company is much more, and the market may finally be figuring that out. Gannett's broadcasting segment generates much of the company's operating income, and last month's surprise bid for Belo (BLC) will expand that business dramatically.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs