Mario Gabelli Likes Another Distressed Newspaper Stock: E.W. Scripps

Fitz: Newspaper stocks, which have lost value even faster and deeper than the general market, are either dwelling in the bargain basement or, as the Motley Fool folks like to say, in a death bed. Mario Gabelli, long a patient investor in the newspaper sector, appears to think this is the time to buy.

He’s increasing his stake in yet another distressed newspaper stock, E.W. Scripps (NYSE: SSP), the newspaper and TV station operator spun off last year from its more glamorous lifestyle cable programming and digital sibling businesses.

In an SEC filing, Gabelli disclosed that his Gamco and other entities now own 2.19 million shares of SSP, or 5.27%  of shares outstanding. That’s up from the 1.316 million, a 3.16% stake, he declared back in September.

Since its spin-off in a one-for-three stock split last July, SSP  has slipped from $9.11 a share to a low of $1.65. In mid-day trading Monday, SSP was at $1.98, down 6 cents, or 2.94%, from its open.

In recent weeks, Gabelli’s funds have increased their positions in two other newspaper stocks out of favor on the Street, Media General Inc. (NYSE: MEG) and Journal Communications (NYSE: JRN).