Thursday, November 20, 2008

McClatchy shares up slightly

McClatchy (MNI) shares closed at $1.53 a share on Thursday -- up 1.3 percent from yesterday's close.


Anonymous said...

Please a stock market gruru why is McClathcy stock up and all the other newspapers down?

Anonymous said...

34,800 share buy on close. What is happening is that 1/3 of McClatchy's entire float is held by short sellers. (over 20 million shares)Institutions, Mutual Funds, hedge funds and private equity firms holding large positions are now trying to unwind those positions and take their profits. They send their orders to the floor in the morning and the floor brokers hold them till the end of the day waiting for a big move to cover on. When they don't get it, they simply enter a Buy on Close order which executes at the final bell.

You also have a situation where McClatchy is in all likelihood trying to prop their stock up. One of the family owns an Index firm and an ETF firm. They can use that to make small buys (100) shares all day long to keep the price from dropping as most all other activity such as retail investors have completely abandon the stock.

If you take a look at Insider and Institutional holdings, you will see that Institutional ownership of MNI is now 70% and Insider ownership is now almost 50%.

One way or another, when you see a stock completely separate from it's peers, or be up when the entire market is down, it isn't a good thing. It means that short sellers are driving the price up by taking their profits 9 times out of 10.

Anonymous said...

6:34 Thanks for the info.