Friday, January 16, 2009

McClatchy shares fall 13% on Friday

McClatchy (MNI) shares fell 13% on Friday, closing at 81 cents per share.
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9 comments:

Anonymous said...

$.81 is still too much for McClatchy stock. I see the company as worthless.

Kevin Gregory said...

The all-time low of 62 cents a share was set just before the end of 2008. I think MNI will set a new all-time low within days.

Anonymous said...

They get automatically delisted after 30 days below $1, right?

Kevin Gregory said...

Jim62sch it's not automatic after 30 days. Lee has been under $1 a share for weeks and they are trying all kinds of maneuvers to avoid delisting. But investors sit up and take notice if a company is under threat of being delisted.

Anonymous said...

It isn't automatic, however, there are few if any mitigating factors that the NYSE could find to make an exception in the case of MNI.

All but affected pundits within the industry are aware that no matter their future vision of themselves, the inconceivable debt load precludes any possibility of remaining solvent. A company can cannibalize, layoff, and cut expenses all day long shouting, "we're wildly profitable", but it doesn't make it so when you have 2 billion in debt that is going to take several generations to repay.

Anonymous said...

This makes no sense.

Why is it that people are unwilling to pay for the writings and thoughts of classically trained professional journalists with the highest ethical standards?

Must be really stupid customers out there who don't understand the importance of THE TRUTH as seen by journalism school graduates and English majors who never quite matured beyond their sophomore year.

If only the readers were smart enough......

Anonymous said...

Jim62sch,
Our in-house experts explained that awhile back. I understood them to say the stock price under a dollar for a month rule, has a lot of variables. The NYSE can assess the company’s prospects beyond its current stock price.

Brandy glasses raised, and snifter clink to our knowledgeable ones. When MNI fell under a dollar last time, we were told what would happen in December and January, and it did, just like clockwork.

If McClatchy would just say they are going to reorganize following a more truthful journalism model, I would think that a good thing. If they plan to continue the dishonor they have brought to the journalism profession, I don’t care if they lie wounded on Wall Street. I am not dialing 911.

Anonymous said...

Now McClatchy has a ‘burn rate’ problem. I don’t understand what that is exactly, but it sounds bad, real bad.
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Via MarketWatch
The Problem Of "Burn Rate" Hits Mainstream Companies …MNI….
By 24/7 Wall St.

The newspaper industry is being [crippled by the burn rate problem.] Big chains Journal Register and Gatehouse are already at the edge of insolvency. McClatchy (MNI), the country's third largest newspaper company may well have debt service problems this year.

Unless the credit markets unlock at a furious pace, there will be a lot of well-known companies going into bankruptcy this year.
http://tinyurl.com/7el73k

Anonymous said...

When we get to stock minutia like this, I can tell we’re getting oh so close boys.

The thought of yet another liberal worthless rag going belly up by their own Kevorkian like hand is just so delicious.

How does the phrase go? “I love the smell of burning print ink in the morning.”