Newspaper Stocks Explode on Gannett Q3 Forecast

By: Mark Fitzgerald Newspaper stocks soared in early afternoon trading Tuesday, fueled by the news that Gannett will report third-quarter earnings that far exceed expectations.

Gannett, which trades on the New York Stock Exchange under the symbol GCI, was up $1.73, or 17.3%, to $11.71 a share.

The good feelings about Gannett extended to the rest of the newspaper sector, with every NYSE-traded newspaper company up -- some by even bigger margins.

Community newspaper publisher Lee Enterprises (NYSE: LEE), for instance, was up 48.1% just after noon, jumping $1.03 to $3.17. Just a few months ago, it look like Lee would be delisted from the Big Board because its share price was mired below $1 a share.

Media General Inc. (NYSE: MEG) zoomed 9.3% on a 73-cent gain to $8.63. E.W. Scripps (NYSE: SSP), which was the first stock this year to exceed its 52-week since the financial meltdown hammered newspaper stocks, was up 8.8% on a 63-cent gain to $7.83.


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