McClatchy (MNI) shares dropped 15 percent in trading on Monday. Is there an explanation to today's drop? The obvious answer is the report that McClatchy's November revenue fell 22 percent from a year ago. But MNI's share price has fluctuated so much over the past few weeks, who knows. I wouldn't be surprised to see MNI jump up 15 percent tomorrow..
The above chart shows the drop in McClatchy shares over the past year.
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2 comments:
The thing is, when you see MNI jump 15% you know it is short covering.
When I told you all that MNI was going to start dropping again on the 10th or 11th there was a reason. It is now currently trading without a dividend and till the end of the month people will be taking losses keeping sell pressure on the stock.
You should also note that this months revenue short fall was actually posted in the WSJ. Last month it was posted for a couple of hours and pulled, probably by McClatchy. This time they wrote an article to accompany the Press Release.
Yes, this stock is being targeted by short-sellers. But there is a reason for this, and that is there is absolutely no sign from Sacto that anyone has any idea on earth how to reverse these horrible figures. They clearly mean less revenues, which means MNI is going to have trouble making their payments, which means more cutbacks and layoffs, etc. They need a new business plan, and they don't have it.
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