In addition, the company has strong management.
"Five years ago, when the economy was still in good shape before the onset of the recession, a lot of people were telling Gannett to borrow billions of dollars to pay a special dividend or a gigantic buyback. Instead, even though the credit markets were still very strong, the company chose to use its robust free cash flow to pay down its debt."
"That's how this newspaper company survived the financial crisis with an investment-grade credit rating. And Gannett has continued to clean up the balance sheet. Over the last three years, the company has reduced its debt by more than $2 billion."
And perhaps the creme de resistance is the company's strategy.
"The CEO wants to use their numerous local papers and digital platforms to become the local media play in America. I think this is a terrific strategy, and it's clearly working given that Gannett's most recent quarter, which is reported back in late October, came in much better than expected."
The strategy appears to be paying off.
"Rather than firing journalists to cut costs, Gannett's been focused on creating quality product to the point where management believes they now employ more journalists than any other newspaper company in the country."
All told, Cramer thinks the price action is justified and despite gains of more than 30% ytd, he believes the stock has room to run. "Gannett is absolutely worth buying."
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