XEROX CORP. $17 (New York symbol XRX) has agreed to acquire Advectis Inc. for $32 million. Advectis makes software that helps mortgage lenders electronically store and share documents. The price is just 12% of the $266 million or $0.28 a share that Xerox earned in the second quarter of 2007. But the deal gives Xerox an opportunity to market …read more »
GAMESTOP CORP. $50 (New York symbol GME; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 159.0 million; Market cap: $8.0 billion; WSSF Rating: Extra risk) earned $0.13 a share in its second fiscal quarter ended August 4, 2007, up sharply from $0.02 a year earlier. Sales rose 35.0%, to $1.3 billion from $963.3 million, while same-store sales grew 29.1%.
Most of the …read more »
DOW JONES & CO. INC. $53 (New York symbol DJ; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 83.8 million; Market cap: $4.4 billion; WSSF Rating: Above average) continues to trade below News Corp.’s takeover offer of $60-a-share, as it looks like enough members of the Bancroft family plan to oppose it. The family controls 82.4% of the company’s class B …read more »
GANNETT CO. INC. $56 (New York symbol GCI; Conservative Growth Portfolio; Shares outstanding: 234.9 million; Market cap: $13.2 billion; WSSF Rating: Above average) publishes 90 daily newspapers in 38 states, including USA Today, the nation’s most widely read newspaper. Other operations include over 1,000 non-daily community newspapers, and 23 TV stations. Gannett also owns 17 daily papers and over 300 …read more »
Advertisers continue to shift spending to Internet sites and away from newspapers and other print publications. But these three leading publishers are doing a good job adapting their businesses to the Internet, and profiting from it.
They own some of the best-known brands in this industry, which gives their online properties instant credibility. Strong web sites also make it easier for …read more »
SUPERIOR PLUS INCOME FUND $11.07 (Toronto symbol SPF.UN) faces gradual shrinkage in its core propane distribution market. Its diversification into new areas such as pulp and paper chemicals and construction materials does not inspire our confidence. We don’t recommend Superior Plus.
WESTSHORE TERMINAL INCOME FUND $11.49 (Toronto symbol WTE.UN) receives 90% of the revenue at its coal storage and loading terminal …read more »
GANNETT CO. INC. $61 (New York symbol GCI; Conservative Growth Portfolio, Consumer sector; WSSF Rating: Above average) is one of the nation’s largest media companies. It publishes USA Today, 90 other daily newspapers and 1,000 non-daily newspapers. It also owns 23 TV stations. In the UK, it publishes 300 newspapers, including 17 dailies.
Gannett’s earnings from continuing operations fell 1.8% in …read more »
GATEWAY CASINOS INCOME FUND $15.07 (Toronto symbol GCI.UN; SI Rating: Speculative) operates the Burnaby Casino and Cascades Casino in Vancouver, B.C., the Palace Casino in Edmonton, Alberta and the Lake City Casinos in Kamloops, Kelowna, Penticton and Vernon, B.C. The fund currently yields 9.2%. We think the fund’s limited geographic diversification, plus competition from other gambling destinations and other forms …read more »
Income trusts as a group are more speculative than most investors realize. They carry a lot of hidden risk, due to the way they are organized as investments, and to the way they are valued by investors.
Share prices of many companies rise in price when they announce plans to convert into income trusts. But that leaves a lot of room …read more »