Burned by Bankruptcies, But Betting on Newspapers

Posted
By: Mark Fitzgerald

While JPMorgan Chase was negotiating with debtor newspapers where its investments went badly, such as bankrupt Tribune Co., it was also making a big bet on the business -- tripling its holdings in the nation’s largest newspaper publisher, Gannett Co.

In a filing Tuesday with the U.S. Securities and Exchange Commission, JPMorgan Chase disclosed it owns 24.3 million shares of Gannett (NYSE: GCI), or 10.2% of shares outstanding.

When it last reported its GCI holdings on Dec. 31, 2009, the bank held 7.4 million shares, or a 3.14% stake.

Based on reported holdings so far, JPMorgan Chase appears to now be the biggest institutional holder of Gannett stock.

Like other newspaper stocks, GCI has significantly outperformed the Dow or S&P 500 indexes as it rebounded from its lows in the winter of 2009.  Despite falling back somewhat from recent highs, GCI as of Tuesday was up 199.8% in the past 52-weeks. By contrast, the S&P 500 is up 27.6%.

Tuesday, GCI closed at $16.04, up 3 cents from the open. GCI has traded in a 52-week range of $3.10 to $19.69.

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