Thursday, December 18, 2008

McClatchy shares fall 29 percent Thursday to $1.05, raising concerns McClatchy may face listing sanctions

McClatchy shares dropped an incredible 29 percent in trading Thursday, closing at $1.05 a share. This is the lowest price since McClatchy joined the big board 20 years ago.

At this price McClatchy is in jeopardy of being barred from floor trading. The NYSE requires stocks traded on the floor to maintain a price above $1.05. Companies that can't maintain that average closing price over a 30-day period can be dropped. Which has already happened this year to Sun-Times Media Group, the Journal Register company, and GateHouse Media.

Fitz and Jen note somebody dumped 206,500 shares just before closing:
The closing price of $1.05 was a new all-time low, thanks to a swoon of 44 cents, or 29.5%. Investors unloaded furiously, including a lot of 206,500 shares sold off 25 minutes before the closing bell. Trading volume of 1.04 million shares was more than twice normal.

There was no particular market-moving news about MNI, although the syndicated Motley Fool column
mentioned the stock in the same paragraph with the words “you'll likely see more than a few newspapers fold in the not-too-distant future.”

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11 comments:

Anonymous said...

http://online.wsj.com/article/BT-CO-20081218-713032.html

* DECEMBER 18, 2008, 3:35 P.M. ET

McClatchy Shrs Fall To All-Time Low After Multi-Day Drop

By Jennifer Hoyt
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Shares of The McClatchy Co. (MNI), which have been on a downward spiral since the newspaper publisher released disappointing revenue figures Monday, plummeted more than 30% Thursday to an all-time low.

Shares of McClatchy, which had a market capitalization of $97.7 million as of Wednesday's close, were recently down 32% to $1.01. The stock is down 92% year to date.

A representative from McClatchy didn't immediately return a request for comment.

On Monday the company said its advertising woes worsened in November, as ad revenue fell 22% to $126 million despite a 7.5% increase online, helping push total revenue down 19% to $152.2 million. Online advertising made up 11% of ad revenue for November.

Benchmark Company analyst Edward Atorino said McClatchy's stock decline Thursday could be an indication a large investor is exiting the stock but stressed that he wasn't certain.

Ever since the Tribune Co. - publisher of the Los Angeles Times, Chicago Tribune and Baltimore Sun - filed for bankruptcy protection early last week, investors have been afraid other media companies will be following suit, Atorino said.

snip

Anonymous said...

I think investors are looking at that dismal November ad result, which was worse than October, doing a straight-line analysis and realizing December will be even worse. I do not disagree with them. This company needs reorganization, and reorganization quickly, or the jobs of thousands will be imperiled. Bankruptcy and relief from debt payments is the only option left.

Anonymous said...

Actually that was a 200k share trade at 1.01 and appears to be someone covering a short. The following trades were at 1.03 and 1.04. Had it not been for that trade, MNI would very likey have closed well below one dollar in the .95 to .98 range.

As for Jim and Joe, there are a whole lot more than "Tin Foil Hat" people reveling in McClatchy's demise. I've made a killing short selling these incompetent fools. Then there are the former employees, competitors, and honest journalists that despise what these people have done to their profession.

Archer05 said...

I have been away for several hours, even though we follow MNI closely, I am stunned that the stock has dropped to $1.05. I have read every word and link on all the threads, the information is helpful, and add in a chuckle:

Anonymous said...
“…..even in liquidation the company still retains value. Kind of like an old ford sitting in a junk yard. It might still have a knob or a bolt worth something to someone.”
-----------
I get that, thank you.

Also, the McClatchy employee looking for inside information not found here, fear not, your pink slip is coming, and it will contain all the ‘inside’ information you will need.

Anonymous said...

Here is the inside information....

At $1 a share McDonalds is going to buy McClatchy. They will use the paper to wrap big macs and current newsroom employees to cook, serve, clean restrooms and take orders.

Anonymous said...

Did Pruitt unload shares again?

Anonymous said...

No, Pruitt has no skin in the game. That is why he is happy to let it tank and cannibalize it all the way down. He's collecting a check and dawning his Golden Parachute.

Anonymous said...

The trouble with the Ford in the junkyard story is that this wreck still has a pricetag on it, and if broken apart for prime pieces, the banks will want their payment first. They will take the prime real estate, the Miami waterfront commercial property, the printing presses, and the office furniture. The only thing left will be the name on the masthead and a memory of the time I got laid in that old Ford.

Archer05 said...

Memories are good things, where is that old Ford located?

Dave D. said...

..Not all memories are good things, ARCHER. I'd venture that Anon 7:09 remembers that Ford with da stain.

Anonymous said...

3:14 said, "This company needs reorganization, and reorganization quickly, or the jobs of thousands will be imperiled."
They already laid off thousands so BIG WHOOP!

3:20 said, "Had it not been for that trade, MNI would very likey have closed well below one dollar in the .95 to .98 range."
Dang one could only wish!
"Then there are the former employees, competitors, and honest journalists that despise what these people have done to their profession." You forgot the thousands of production, press operators and other support crew.

4:06 said, "I am stunned that the stock has dropped to $1.05."
I'm stunned that Gary Pruitt is still holding the reigns!

McClatchy watch said in the original post..."There was no particular market-moving news about MNI, although the syndicated Motley Fool column mentioned the stock in the same paragraph with the words “you'll likely see more than a few newspapers fold in the not-too-distant future.”

Isn't The Motley Fool one of McClatchy's syndicated columns? Aren't they shooting themselves in the foot...but they do have a good website!

Oh and it not a Ford, it's a YUGO!!! (They just shut their door a few weeks ago).