Not sure what short sellers are? F&J explain:
Short sellers, of course, borrow shares and sell them, hoping the share price goes down so that when they buy shares to return them they can pocket the difference.
Here are the short interest (percentage of shares in trade held by short sellers) in newspaper stocks:
- MNI: 27.23%
- GCI: 26.6%
- Media General Inc. (NYSE: MEG): 24.8%
- Lee Enterprises (NYSE: LEE): 21.13%
- The New York Times Co. (NYSE: NYT): 18.07%
- E.W. Scripps (NSYE: SSP): 10.29%
- The Washington Post Co. (NYSE: WPO): 3.43%
- Journal Communications (NYSE: JRN): 3.29%
- A.H. Belo (NYSE: AHC): 2.55%
UPDATE: A reader says MNI's bottom could fall soon because the short sellers are starting to cash out:
"... now the short sellers are cashing out as they find no value going forward. When the short sellers bail there will be nothing left to lift the stock and the march to zero will begin in earnest."
.
.
6 comments:
It's worse than they realize. The short interest numbers that were released yesterday represent 6 million shares covered in the previous two week period.
It is beyond lack of confidence because now the short sellers are cashing out as they find no value going forward. When the short sellers bail there will be nothing left to lift the stock and the march to zero will begin in earnest.
For what it is worth, the company that supplies the pro-cards and T&E cards to McClatchy (J.P.MORGAN CHASE, I think) is asking for collateral.
Seems to me that such a picture is worth 1000 words as to the expected solvency of MNI.
What are pro-cards and T&E cards ?
Maybe MNI insiders are selling short on news they have ? Illegal but done everyday. Many relatives and friends getting rich.
To 4:55
Pro-cards are credit cards issued by company to certain employees to be used to purchase materials needed in the everyday function of that employee's department such as office supplies from Office Depot or a set of drive belts for an A/C blower.
T&E is Travel & Entertainment.
Again, a company supplied credit card
Maybe MNI insiders are selling short on news they have ? Illegal but done everyday. Many relatives and friends getting rich.
==================
Doubtful. Until recently these people were making the big bucks off of issuing themselves stock options and collecting the dividends. By the time their money tree was picked clean MNI had solicited protection from short sellers.
Also, to have done so is not only illegal, they would have suffered the worst imaginable case of institutional backlash from their largest shareholders who were taking a bath.
I'm 6'3" and I sold my stock a long time ago. Who cares what short people do?
Post a Comment