Thanks for sharing this idea! The valuation is compelling, but it’s been stuck in this range for a while. Has management actually talked about any plans to unlock value, like buybacks, dividends, or selling the real estate? I’m worried that without those, my money could be tied up indefinitely, especially if FCF keeps shrinking.
The $8 million printing press write-off doesn’t inspire confidence. Do you think that was a one-off mistake, or is poor capital allocation a recurring issue? And what’s their strategy for the future? Are they pivoting to digital, or just doubling down on print in a declining industry?
Also, do you think the controlling shareholders have any incentive to prioritize minority investors? It feels like they could just keep burning cash on questionable decisions. The margin of safety is there, but I’m not sure if the upside outweighs these risks. Curious to hear your take.
Thanks for reading! I have not talked to management about their plans to unlock value, but I plan to reach out at some point down the road.
I think they bit off a lot more than they could chew with regard to the new printing press, and overpromised investors from a cost standpoint. Consequently, I expect mgmt will be extra, extra careful with any and all investments in the future.
They’re flipping to a digital distribution method, but as you can see print advertising revenues continue to dwindle year after year…that said I don’t think they are going to zero this year or next, and I can comfortably get 100% of my investment back via FCF of the business in short term plus the real estate for free.
I have no reason to believe Ron Stern would treat minorities unfairly, and I guess we can agree to disagree on upside outweighing the risks!
Thanks for sharing this idea! The valuation is compelling, but it’s been stuck in this range for a while. Has management actually talked about any plans to unlock value, like buybacks, dividends, or selling the real estate? I’m worried that without those, my money could be tied up indefinitely, especially if FCF keeps shrinking.
The $8 million printing press write-off doesn’t inspire confidence. Do you think that was a one-off mistake, or is poor capital allocation a recurring issue? And what’s their strategy for the future? Are they pivoting to digital, or just doubling down on print in a declining industry?
Also, do you think the controlling shareholders have any incentive to prioritize minority investors? It feels like they could just keep burning cash on questionable decisions. The margin of safety is there, but I’m not sure if the upside outweighs these risks. Curious to hear your take.
Thanks for reading! I have not talked to management about their plans to unlock value, but I plan to reach out at some point down the road.
I think they bit off a lot more than they could chew with regard to the new printing press, and overpromised investors from a cost standpoint. Consequently, I expect mgmt will be extra, extra careful with any and all investments in the future.
They’re flipping to a digital distribution method, but as you can see print advertising revenues continue to dwindle year after year…that said I don’t think they are going to zero this year or next, and I can comfortably get 100% of my investment back via FCF of the business in short term plus the real estate for free.
I have no reason to believe Ron Stern would treat minorities unfairly, and I guess we can agree to disagree on upside outweighing the risks!
Really interesting situation! Thank you for doing the research and presenting it!