Friday, August 28, 2009

"Give me a reason"

Everyone wants a reason. So I get some calls from brokers this morning, asking me if I gan give them a reason to buy Gannett (GCI). So I go over enterprise value, book, the future of some of their businesses and the effect of the improving economy on it, and then he interjects, "No--Can you give me a reason?"

So I relented. "OK, OK---I'll give you a reason that you brokers like. Do you watch CNBC? Did you see the Obama effect on J. Crew? Jane Wells was trotting out a J. Crew sweater yesterday. That stock was 10 in March, it's now 34. How about the Kennedy effect on USA Today?"

He said, "What the heck is that?"

I said, "USA Today is pushing Kennedy Memorial products. They have a special edition, book, and a whole bunch of front page reprints. If Obama worked for J. Crew, can't Kennedy work for Gannett? How about that?"

And he said, "Now that's a reason!" And he hung up. After all, do brokers ever say bye?

So here's a link to the Kennedy page.

And your reason.

Because most people overthink how stocks are sold.