The McClatchy Co. (NYSE: MNI) was frog-marched back into penny stock territory. On trading about double the normal volume, MNI closed down 23 cents, or 21.5%, at 86 cents. Not only did it fail to hold its above-dollar value, MNI’s market cap fell out of Big Board compliance, again, as it shrank to $70.6 million.
Short-sellers could account for the volume. According to ShortSqueeze.com, so-called “short interest” in MNI -- the amount of stock held by short-sellers hoping to profit from a fall in share price -- has itself fallen 21% to 7 million shares. That’s still a hefty 21.12% of MNI’s float.