McClatchy shares hit at all time low in trading Wednesday, when MNI dipped to $1.48 a share just before noon EST. McClatchy rose slightly in the afternoon, eventually closing at $1.54 -- down 1.3 percent from yesterday's close..
Above chart shows the drop in McClatchy shares over the past year.
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UPDATE: McClatchy isn't the only newspaper stock stinking up the Dow -- 5 newspaper stocks hit 52-week lows today.
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6 comments:
Where are the Karl Ichans or other clever takeover artists who buy up companies that are cheap to dismantle them. At this price, MNI is very vulnerable to a takeover, but no one is interested because the newspaper properties really aren't worth anything. That tells the whole story about what this generation of corporate leaders has done to a once-great company that once had pride in its employees and cared for them. We are now just as worthless as the stock.
If a "takeover atist" was to buy McClatchy, it would more likely be a real estate company than a newspaper company, because McClatchy's property (land and buildings) must be worth more than the capaitalization of the company.
anon 232:
While the corporate leaders your refer to are certainly culpable we are living through a perfect storm that is aimed directly at newspapers. A quick look at other companies makes it clear that MNI is hardly alone. Bring on the MSM bailout money!
...Hmmm ? Real estate takeover artist buy's newspaper company....
...Didn't Sam Zell do exactly that, and now he can't find a bigger fool to buy the Cubs and Wiggley field ?
...Paper ! Free Newspaper ! Get 'em here ! ( No, not this paper in my hand, you moron, The WHOLE company is free ).
Corporate Raiders (take over artists), are only interested in poorly managed companies that can be turned around. As for real estate values, most papers are located in the urban core of their blighted midtown sections. You can stamp "Historical Landmark" on a 19th century building, but if the staff can keep track of the murder rate by peering out the window, that precludes any premium the sale of your landmark might bring.
Also, McClatchy's 2.3 Billion dollar debt makes a takeover or going private literally impossible. The family can't raise it, the banks won't lend it, and the Raiders won't spend it. Why would anyone take on that kind of debt when they can simply wait until they can carve out the pieces they might want at auction?
There you have McClatcy's future in a nutshell.
MNI real estate consists largely of honking big printing plants. Know anyone who needs a printing plant these days? Inner city location a liability in some cities, and economic problems nix the value of prime waterfront sites like that occupied by the Miami Herald.
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