Omega Cooperman raises stake on Gannett

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<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "Omega Advisors leader Leon Cooperman (trades. portfolio) announced on Thursday that it had increased its stake in Gannett Co. Inc. (NYSE: GCI) by 22.43%. "data-reactid =" 11 "> Leon Cooperman (Trades, Portfolio), head of Omega Advisors, announced on Thursday that it has increased its stake in Gannett Co. Inc. (NYSE: GCI) by 22.43% ,

In late 2018, the guru converted his New York-based hedge fund into a family office structure. In a letter to customers, Cooperman, who is over 70, said he decided to make the change because he didn't want to spend the rest of his life "tracking the S&P 500 and focusing on returns to generate investor capital ". His investment strategy combines a macro view with fundamental valuations.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "According to GuruFocus Real-time picksCooperman, a premium feature, invested 1.38 million shares in Gannett on December 31, bringing its total holdings to 7.5 million. The position corresponds to 2.85% of the company's equity portfolio. The stock was trading at an average price of $ 6.38 per share. "Data-reactid =" 19 "> According to GuruFocus Real-Time Picks, a premium function, Cooperman invested in 1.38 million shares of Gannett on December 31, achieving its total holdings. The position represents 2.85% of the stock portfolio of the The stock was traded at an average price of $ 6.38 per share.

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GuruFocus estimates that Cooperman has lost 15% of its investment since the first quarter of 2014.

In November, New Media Investment Group Inc. announced the successful completion of Cash & Stock's acquisition of Legacy Gannett. After the merger, the combined company changed its name to Gannett Co. Inc. and adopted the ticker "GCI" on the New York Stock Exchange.

The McLean, Virginia-based mass media holding company, the largest daily newspaper publisher in terms of total daily circulation, has a market capitalization of $ 782.75 million. The stock was trading at $ 6.37 on Friday, with a price-to-book ratio of 0.61 and a price-to-sell ratio of 0.24, which GuruFocus considered close to a 10-year low.

According to the middle price-sales graph, the stock is trading below its historical average, indicating that it is undervalued.

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GuruFocus rated Gannett's financial strength as 4 out of 10 due to poor interest coverage and a low Altman Z-Score of 1.67. This warns the company against going bankrupt, since revenue per share has been declining since the past three years.

The company's profitability did not do much better at 5 out of 10 points. In addition to poor margins and earnings that outperform more than half of its competitors, Gannett has a low Piotroski F-Score of 2, indicating that operating conditions are poor. Wealth grows faster than sales, suggesting that the company may be less efficient.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Cooperman is 6.14% of the outstanding shares by Gannett's largest guru shareholder. Other guru investors who see the value of the stock are Barrow, Hanley, Mewhinney and Strauss. Chuck Royce (Trades, Portfolio), Jim Simons (Trades, Portfolio) & # 39; Renaissance Technologies, Joel Greenblatt (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio). "Data-reactid =" 59 "> With 6.14% of the shares outstanding, Coannerman is by far Gannett's largest guru shareholder. Other guru investors who see value in the share are Barrow, Hanley, Mewhinney & Strauss, Chuck Royce (Trade, portfolio), Jim Simons (trade, portfolio), Renaissance Technologies, Joel Greenblatt (trade), portfolio) and Paul Tudor Jones (trades, portfolio).

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Portfolio composition "data-reactid =" 60 ">Portfolio composition

Cooperman's $ 1.68 billion equity portfolio, which consisted of 61 stocks at the end of the third quarter, is heavily invested in the industrial sector, followed by smaller holdings in the energy, communications and financial services sectors.

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Other media companies the guru currently owns are Gray Television Inc. (NYSE: GTN), Alphabet Inc. (NASDAQ: togetL), The McClatchy Co. (MNI), AMC Networks Inc. (NASDAQ: AMCX) and Tribune Publishing Co . (NASDAQ: TPCO).

Disclosure: No positions.

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<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Read more here:"data-reactid =" 92 ">Read more here:

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This article first appeared on GuruFocus.