ICAHN is definitely on a roll this year – he said Apple was no brainer at 500 and it is up 44%, family dollar got 2 bids – and made a killing on NetFlix!
Now he is buying a big stake in $GCI (Gannett), the broadcaster and digital media company.
2CentView is that at 33 the stock is only an implied growth rate of 6% and yields 2.5%.
If the company breaks the business into 2 – as Cramer says it should – broadcasting and digital media it could create significant shareholder value.
FV=36 on $GCI
Buy for the yield at 2.5% and the potential 5-10$ of value that can be created following a break-up – this could be another no-brainer with 25% upside over 6 months with carry.