"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.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.
"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."
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