Tuesday, January 20, 2009

Nutty McClatchy editor says it won't matter if McClatchy's stock goes to zero

Pat Dougherty, the controversial editor who once assigned a reporter to investigate whether Sarah Palin gave birth to Trig Palin, said in a published interview that it won't matter if McClatchy's stock goes to zero.
"Stock price reflects Wall Street's bet on the prospects of the company and has no direct impact on operations. If the stock price falls below certain levels, it could be "delisted" from the New York Stock Exchange, in which case it would be traded elsewhere. How well it trades determines some of the company's capital capacity, but has no impact whatever on the balance sheet, operating profits or the like. McClatchy management has always said it did not make business decisions based on influencing the stock, and that remains as true now that the price is low as it was when it was high. It's been well reported that stock analysts are pessimistic about the entire newspaper sector, but McClatchy expects that when business performance improves, as we are confident it will, the markets will respond by valuing the stock more highly.

"I don't think stock price has any relevance to customers, either readers or advertisers. If you needed to buy a car, how big a consideration would the price of Ford or GM stock be? Readers will choose the Daily News if it gives them valuable information they want, and advertisers will use the medium if it helps meet their business needs. Wall Street has nothing to do with that.

"I own a modest amount of McClatchy stock. I don't worry about the price. I can say that I feel happy when I see it go up, and less happy when it goes down. The same is true of my mutual funds. These days, I don't look at my portfolio if I can help it."
The word "delusional" comes to mind. McClatchy is $2 billion in debt. If the stock collapses, the company will not have the capital to pay its debtors and the company will file bankruptcy. And McClatchy trusts this goofball to run its newspaper in Anchorage -- amazing.

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Anonymous said...

McClatchy managers have to regurgitate the corporate line.

If you don’t , your career will likely take a left turn down Moyer Street.

In an industry that is collapsing, there will be fewer manager jobs. So cheerleading is the last desperate ploy for job security.

Anonymous said...

Ah, the ideal Gary Pruitt replacement clone. He's incompetent, dilusional and in a permanent state of denial. Alert the board!

McClatchy Watch said...

Dougherty is right up there with the McClatchy editor who said Gary Pruitt is the "smartest newspaper executive in the country".

Anonymous said...

Didn't we have a post here that said there would be a lot of changes in editors at McCrappy? This clod is surely one that needs to leave the ranks of editor and journo-liar.

Anonymous said...

Oh boy....


Star Tribune: some buyout checks will bounce

By David Brauer |

Published Tue, Jan 20 2009 10:47 am

Nearly a dozen Star Tribune employees who took the company's buyout money learned last night that their five-figure checks will bounce if cashed.

Anonymous said...

Pat Dougherty is a buffoon. Clearly he thinks so little of the people of Alaska, he gives made-up news a place in his paper. Even if he is taking orders from a deceitful corporation, he still should have some journalism standards. He does not have even low standards, and that is why McClatchy must not remain alive to further erode the public trust.

Anonymous said...

Oh come on. On this blessed day some more moving of the Titanic journalistic deck chairs from McClatchy is in order.

Said another way, what a Marxist IDIOT

Anonymous said...

As someone who has been a trader and investor, beginning with stocks in the newspaper industry. I find is almost impossible to believe that an editor of a McClatchy paper could be so completely uninformed when it comes to the relevance of how his stock trades and the direct impact it has on daily operations.

This man is either completely stupid, or completely dishonest.

I am not entirely sure which this Doughtery is, but having a policy of not looking at his portfolio lends a keen insight into the most likely conclusion.