Via Editor & Publisher, here is Alexia Quadrani's analysis:
While McClatchy is clearly suffering from a swooning stock price and its high debt load due to the acquisition of Knight Ridder, Quadrani thinks management will buy back shares, increase the dividend, or possibility take the company private. McClatchy's exposure to California and Florida, which represents 35% of its revenue, is hurting the company now, but long term, JP Morgan likes these markets. "If and when there is some stabilization in these markets, we should see an above-average benefit to McClatchy's revenue since we believe these markets have strong economic prospects longer term," Quadrani wrote.
McClatchy Company shares were trading around $8.50 per share until late in the day, when the price suddenly spiked upward, closing at $9.03.
Last December there were rumors about a possible McClatchy family takeover. My posts on those rumors are here and here.
