UPDATE: MNI surged 37 percent Monday to $1.50 a share.
On the heels of a 36 percent gain Friday, McClatchy (MNI) showed more strength Monday, jumping up 35 percent in early trading on Monday. As of 10:00 EST, MNI was trading at $1.44 a share, 35 cents above Friday's close.
In welcome relief for McClatchy investors, McClatchy bought itself more time from the looming threat of being delisted from the New York Stock Exchange due to a low stock price. Via email, Alan Mutter says McClatchy would be booted off the Big Board if its shares fell below $1 for 30 days. MNI closed Friday at $1.09 per share. Which means MNI has some breathing room.
From DaveD in comments: it's not a Dead Cat bounce, it's a Dead Pruitt bounce!
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7 comments:
No, actually they have not bought themselves breathing room. The truth is they have no floor and the ONLY thing holding the stock up is short sellers covering. Not a good thing at all, and very detrimental to unknowing, would be investors who think there is actual buying going on.
...I believe this will be thought of as the Grateful Gary Glide.....but really, it's the Dead Pruitt Bounce. Like your Sunday paper does when it's thrown short and hits the rose bushes before plunging into the puddle.
It's an average share price of $1 for 30 consecutive days. Very little breathing room. Do the math.
Bottom line, people are gambling on a cheap stock in hope of a Dem. govt. newspaper bailout. If it comes through, the stock price will go up. If not, oh well. They can declare a loss.
Damn.... at 60 cents a share I was thinking of saving my lunch money and skipping a Starbucks a week and buying the whole thing next Summer.
Editor & Publisher
Fitz & Jen
-After the Bell: What's Up with McClatchy?!-
Jen: We bring glad tidings to the newspaper industry this late afternoon, particularly for one certain company located in Sacramento, Calif.
McClatchy (NYSE: MNI), which has been trading below a buck for some time now, caught some luck today.
The Street pushed up shares in the publisher of The Miami Herald by 37.6% or 41 cents to $1.50 on very heavy volume. The average volume of MNI is something in the ball park of 522,000 shares. Today? Volume was at 1.4 million shares.
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In-house experts:
A lot of gushing over a 41 cent gain.
They are just keyboarding, right?
I am telling you all, I do this for a living. This is a trap because the price change is for one reason and one reason only. Shorts are covering, that is all this is. Absolutely no one with any money or experience is speculating to the upside.
That said, I hope it moves over 2.30 again. If I can get them, I'll be short yet again.
Just don't let anyone you care about, waste their money going up. There is no support level, no news, and on a down day.
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