SM20 RR Donnelley

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SM20 RR Donnelley

Steven shares about how RR Donnelley is performing in his index, the SM20.

4 Responses to “SM20 RR Donnelley”

  1. Joe Straka Says:

    Steve,

    Good post. I enjoyed it. Thanks.

    Here is my thought, there was no strategic thinking behind this acquisition. I’m not saying it was bad or dumb, we’ll find that out later, but there was just not a compelling strategic reason.

    The reason for the acquisition had everything to do with financial numbers and wall street reporting. While we like to think big companies think things through and make smart, strategic decisions, they don’t always. And by the way, one could argue they got a good deal.

    Thanks again.

    Joe

  2. Rob Agathon Says:

    Mr. Schnoll,
    This was a very good piece on RRD & CGX. I agree with many of your comments. I would be curious to hear your opinion on why RRD chose to acquire CGX as opposed to Cenveo. CGX and Cenveo appear quite similar in size, strategy, and regional presence.
    Thanks.

  3. Steven Says:

    Rob
    Cenveo is a completely different type of organization concentrating on national type of accounts just like RRD. Cenveo is also heavily dependent on envelopes which are not a growth oriented opportunity. In addition Cenveo is losing money while CGX was making money. Cenveo also has a very strong willed individual heading the company. RRD was looking in my opinion to get more into the local markets which Cenveo doesn’t have.

  4. Steven Says:

    Joe
    I disagree. RRD knew what they were getting, a profitable organization concentrating on local markets which RRD doesn’t play in. In addition RRD has little to no organic growth and acquisitions are the only thing making them stay afloat.

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