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Andy's Angle Speculative Portfolio 1.1

Cashing Out.

Andy's Angle Speculative Portfolio 1.1

Earlier today we closed out our largest portfolio holding, and the 50% holding within our Speculative division, Gannett Inc. ($GCI)

Our initial analysis, found here, and the main conclusion was this:

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"With all that being said, I see Gannett at a $275m valuation and it feels like an easy buy, especially if you are going to buy in to, or speculate, that management's efforts to drive digital revenues higher comes to fruition."

That is exactly what they did.

In their Q1 report management emphasized their focus on the digital shift and investors loved it, sending shares rocketing nearly 30% higher:

  • Gannett reported a significant improvement in digital revenue, which grew by 8% year-over-year and now represents over 42% of total revenues.
  • Digital-only subscription revenue and digital-only RPU reached new highs, with growth rates exceeding 20% compared to the first quarter of the previous year.
  • The company's Digital Marketing Solutions (DMS) business returned to growth, with revenues up 3.7% over the same period last year, ahead of expectations.

The share price peaked at $3.79 last week and we have closed out our large position at an aggregate sell price of $3.57/share.

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"We have allocated half of our capital to Gannett at $1.85"

This represents a 93% gain from our entry in early December and goes in as the largest gain in Andy's Angle history, and by far the most efficient given the short time frame.

Our speculative portfolio now only consists of our 2.0 pick, found here, which is up about 17% since our initiation last month.

Our overall portfolio has been shrunk down to that and our 6.0 value stock pick, with a much larger weight placed on the latter.

We expect a secondary value pick to be released before the end of the month and we have begun scouring for a replacement holding to balance out our speculative portfolio.

-Andy

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