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Sunday, 02/25/2001

GCI - Gannett Company Inc.

Company Description

Founded by Frank E. Gannett and associates in 1906, Gannett was incorporated in 1923 and listed on the New York Stock Exchange in 1969. The company has approximately 53,400 employees. Its more than 264 million shares of common stock are held by approximately 14,000 shareholders of record in all 50 states and abroad.

Gannett is an international company with headquarters in Arlington, Va., and operations in 45 states, the District of Columbia, Guam, the United Kingdom, Belgium, Germany, Italy and Hong Kong.

Gannett is the USA's largest newspaper group in terms of circulation. The company's 99 daily newspapers in the USA have a combined daily paid circulation of 7.8 million. They include USA TODAY, the nation's largest selling daily newspaper, with a circulation of approximately 2.3 million.

In addition, Gannet owns a variety of non-daily publications, operates 22 television stations and runs more than 100 Web sites.

(source: Gannett)

Reasons To Invest

As the above company description explains, Gannett's primary operation is in the newspaper business. The nature of the publishing business is a relatively stable one, as opposed to the volatility in other forms of media. As such, Gannett has a history of relatively stable and consistent earnings growth. The publisher grew its earnings by nearly 16 percent over the last five years, which led to some significant price appreciation in its shares over that period.

Gannett's history of earnings out performance stems from the company's high operating profit margins and effective management team. In the last 12 months, Gannett operated with nearly 30 percent margins and 15 percent profit margins. The company's return on equity over that same time period was 20 percent.

Although the advertising market, from which Gannett receives most of its revenues, experiences ebbs and flows with the broader business cycle and economy, the company manages its costs effectively in order to maintain profitability. Shares of Gannett would make a nice addition to a long-term investor's portfolio in an attempt to diversify systematic risk away from other portions of the fund.

DRIP Information:

Shares to Qualify = 1           Accept Foreign Accounts: Yes
Auto-reinvestment  = Yes        Temper Enrollment Serv:  Yes

Min/Max Investment = $5,000/mo
Reinvestment Fees: 
Dividend: 0         Cash: 0     Auto ReInvest: 0

Transfer Agent:

Wells Fargo Bank Minnesota, N.A.
Stock Transfer Department
P.O. Box 64854
St. Paul, MN 55164-0854

Gannett Shareholder Services:

Fundamentals            Company Profile

Industry Group:      Publishing   52-week high=$73.94
Annual Dividend Per Share=$0.88   52-week low =$48.38
Last earnings 01/00    est=1.12   actual=1.11
Next earnings 04-15    est=0.71   versus=0.74
                                  P/E = 18
Analyst Ratings:
Strong Buy    = 4
Moderate Buy  = 6
Hold          = 4
Moderate Sell = 0
Strong Sell   = 0

Six Month Chart of GCI


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