By: Mark Fitzgerald Gannett Co. stock soared Thursday on news the nation's largest newspaper chain plans to shrink its workforce by 1,000 jobs.
Two hours before the closing bell, Gannett (NYSE: GCI) was trading at $20.88, up $163, or 8.41%. Gannett in the afternoon confirmed reports that it intends to reduce its workforce by 3% through cuts or attrition. Investors pushed the stock well above the $20 mark for the first time since July 1.
Gannett's news, on an up day for the broader market, sparked a rally in newspaper stocks.
Lee Enterprises Inc. (NYSE: LEE) jumped 12%, gaining 39 cents to $3.64.
The McClatchy Co. (NYSE: MNI) was trading at $4.11, up 21 cents, or 5.38%.
Journal Communications Inc. (NYSE: JRN) was also a substantial gainer on the rally, trading up 5.82% on an increase of 32 cents to $5.82. The New York Times Co. was trading at $13.16, up 39 cents, or 2.96%.
Other stocks the Street has loved to hate in recent weeks were also up, though more modestly, on Thursday, including GateHouse Media Inc.; American Community Newspapers; Journal Register Co.; and A.H. Belo Corp.
The only wall flowers at the dance were Media General Inc. (NYSE: MEG), which was trading off 40 cents, or 2.67%, at $14.57, and Sun-Times Media Group (OTC BB: SUTM.OB), which hit an all-time low of 20 cents per share, before rebounding later in the afternoon to 23 cents, down 7 cents, or 23.22%, from its opening.
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