Lawsuit Settlement Punctuates Turnaround For Insert Distributor
The sharp move punctuates a dramatic turnaround from a near-death experience early last year for the company that distributes inserts through newspapers and direct mail.
So how does a company manage to increase its share price more than twentyfold in less than a year?
Basically, a lot of things have to start going right. Bankruptcy fears must be erased. Business negatives must turn into positives. Then, as icing on the cake, throw in some windfall legal wins.
All this and more fueled the turnaround of Valassis Communications, best known for its coupon inserts in Sunday newspapers.
Among the many problems Valassis faced last spring was the continued decline in newspaper circulation that was eating away at margins in its core business. Valassis also found itself with a mountain of debt from what seemed to be its ill-timed acquisition of direct mailer Advo. [Read the full article]