From time to time, the editors at 24/7 Wall St. look at the odds that a number of companies may have to file for Chapter 11 over the course of the next year. The analysis involves looking at SEC filings with a focus on balance sheet, cash flow, and risk factors. Also taken into account are stock price, earnings forecasts, and the ability of a company to raise cash.
In the current credit environment, many firms which would not have been on the list at the middle of last year would have to be considered now. We are covering what we feel are the chances that companies will be in front of a bankruptcy situation.
Here is how they size up MNI:
McClatchy (MNI) 1 in 2. Newspaper revenue in free fall. Stock at $1.10, down over 90% in last year.
Of course since this analysis was published MNI's stock has fallen lower -- it closed Friday at 81 cents a share.
Hat tip: Archer05