Saturday, February 09, 2013
Perennial Anodyne Inc. favorite Glacier Media, the largest holding in my real-world portfolio, gets the thumbs-up from the G&M:

"The idea of buying a small illiquid stock in the face of such a huge collapse and prolonged period of weakness might be unfathomable to some. But the value seems right."

The G&M analysis is good, but fails to differentiate between paid-circulation newspapers, which are in critical, if not terminal decline, and free community newspapers, which are a totally distinct business model. The G&M's analysis also understates Glacier's current profitability.  Glacier recently purchased a pile of community newspapers from CanWest, which had run them, as with every media property in the CanWest empire, into the ground by cutting content to the bone and neglecting necessary capex in favor of funneling every spare dollar off to Canwest HQ.  Glacier's management, capable of longer-term and more rational thinking than Canwest's, has chosen to spend a few years building the papers back up, in order to enhance their value over the medium- to long term.  What is remarkable is that Glacier has been able to do so while instituting and increasing a sustainable dividend which currently yields 4.6%.

Glacier is the best-looking value stock I've recently run across, and my money, in this case, is firmly where my mouth is.

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