Q2 STOCKS TO BUY

Publishing Stock Scaling Nasdaq After Buyout Offering

Tribune also updated its yearly guidance

Deputy Editor
Dec 31, 2020 at 11:16 AM
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Tribune Publishing Company (NASDAQ:TPCO) is one of the better stocks on the Nasdaq today, up 9.4% at $13.99 at last check. Today's pop --which resulted in a record high of $14 out of the gate -- comes after the company's largest shareholder, Alden Global Capital, offered to buy the company's remaining shares for $14.25 per share. The firm already owns a 32% stake in Tribune, and says it is not interested in selling the shares to another party. Tribune also updated its quarterly and full-year guidance. 

TPCO has been able to etch out a channel of higher highs since its March 19 four-year bottom of $4.91. Along the way, the shares' 80-day moving average contained pullbacks in July and November. Now, the equity has surpassed its year-to-date breakeven point, on track for its sixth day of gains in the last seven. 

Tailwinds certainly won't come from the analyst community. The brokerage bunch is bullish; both of the analysts in coverage sport a "strong buy" rating on Tribune. Plus, the 12-month consensus price target of $16.50 is a 17.9% premium to current levels. 

Meanwhile, though shorts have been jumping ship, there is still plenty of pent-up buying power that could unwind and keep the pushing the equity higher. Short interest makes up 4.4% of TPCO's available float, or over 12 days to cover at the stock's average pace of trading. 

 

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