Valassis: Good Q3 Keeps Story Intact

Our Dallas presenter says there's been no change to his thesis for Valassis (NYSE: VCI, $18.33). The company's numbers in Q3 were above the Street's expectations. Full year EBITDA guidance was raised by $20 million. In July, a Michigan judge ruled in the company's favor in its litigation against News America. Two more lawsuits against News remain pending. NWS has asked the judge in the state case for a retrial this Friday. The decision was put off, but according to the presenter's legal advisors, NWS's arguments are not likely to be sufficient. The stock has made a 15% move since the recommendation in late September, but much more significant gains are possible over the long-term.