McClatchy (MNI) shares fell 16 percent in trading on Thursday, closing at $2.23. The Dow dropped 4.8 percent. The above chart shows the decline in McClatchy shares over the past one year.
McClatchy (MNI) shares fell 16 percent in trading on Thursday, closing at $2.23. The Dow dropped 4.8 percent. The above chart shows the decline in McClatchy shares over the past one year.
3 comments:
Maybe when McClatchy is de-listed, and it's stock is worthless, the company can be taken private. The debt won't reduce, nor collapse prevented, but the embarrassment won't be so public.
It can't be taken private now. They wanted to try that some time ago, but couldn't get the financing. Now it absolutely out of the question. 200 million market cap that is 2 billion with over 50% of all revenue going to pay off the loans makes that very unattractive.
What they are doing is issuing directors massive amounts of stock and paying for it with layoffs, then collecting dividends sufficient to pad their own pockets before liquidation.
Lets face it. They can't even sell their parking lots in downtown areas. If the banks didn't want nothing to do with them, it would have gone into liquidation last month.
Interestingly something almost none caught was the fact that McLatchy's first round of layoffs was touted as a cost saving measure of 70 million dollars.
What they neglected to tell everyone was that just days before, they allocated an additional 6 million shares to cover stock options that came to 68 million dollar and paid over a 20% dividend. Like I said, it was never reported but the SEC filing was there, just waiting to be reported.
Post a Comment