Aitken and Singo at odds over Fairfax

Aitken and Singo at odds over Fairfax. There are some wildly divergent views being broadcast about the future prospects of Fairfax (see my earlier post re John Singleton). Charlie Aitken says Fairfax is a company likely to benefit from an improving Australian economy. Aitken cited the recent profit result, which saw the stock surge 20%, as an inflection point for much maligned publisher. Growth in the Domain business, no debt and the flexibility to spin out assets were a few of the reasons Aitken gave for his optimism. He also says the arbitrage between Fairfax and other online plays such as Carsales, REA Group and Seek is just too wide. I am not saying that those companies are sells but if Fairfax gets its act together it is dirt cheap. The reaction to their result shows that not a lot needs to go right for this stock to run.