Friday, June 26, 2009

Sell-off!... McClatchy shares drop 32 percent

McClatchy (MNI) shares fell 32 percent Friday, as investors unloaded MNI stock.

Friday, MNI lost 32.4% of its value in a single session, closing down 22 to 46 cents. It was as if traders couldn’t dump MNI fast enough. Volume soared to 5.5 million shares -- five times the normal turnover in a session.

Most of the plunge happened in the last half hour of trading, which seems odd because news about the poor response to the debt swap was known early this morning.

Update: From comments: "Three and a Half Million plus shares sold at close." Wow!
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30 comments:

Anonymous said...

Holy crap!

Anonymous said...

"All is well. REMAIN CALM!!!!!" Kevin Bacon

Anonymous said...

In your dreams. In a few months you will be proved dead wrong.

Target price per share: 3 US$

Anonymous said...

*****Target price per share: 3 US$****

You make less than Michael Jackson.

Anonymous said...

Funny how $3 is a acceptable "target" price.
Four years ago it was $74.... Strange business plan...

Anonymous said...

Never fear! The Captain is at the helm. The seas may be at 20 meters, but all is well. We've added ballast!

Stow those lifeboats and hoist the mainsail. We're taking this storm head on in the name of, "Truth to Power"

signed,
Chief Stew Pru

Anonymous said...

Most of the plunge happened in the last half hour of trading, which seems odd because news about the poor response to the debt swap was known early this morning.





Three and a Half Million plus shares sold at close.

Anonymous said...

"Proved dead wrong...3:48"
Clearly you need to share whatever it is you're smoking. Good luck with those dreams you're having.

Anonymous said...

Here's all you need to read:


"Fitch has believed that McClatchy has an untenable capital structure relative to the prospects for its future cash flow generation. The ratings reflect Fitch's belief that default is imminent or inevitable."

Anonymous said...

Is this a new all time low? (Not for their poor ethics, I mean their stock price)

Credman said...

Another million shares transferred after the close at 56 cents, up 10 from the close. I doubt it's heading towards 3:48's target price, though.

Anonymous said...

Man the life boats!

Anonymous said...

What's the new firewall price? .01Cents?

Anonymous said...

Another million shares transferred after the close at 56 cents, up 10 from the close. I doubt it's heading towards 3:48's target price, though.


No it didn't. The total number of shares traded after hours was 664,880 and the price went from .46 to .56 on a grand total of 40,000 shares bought after an additional 371,421 had taken it back down to .46 from .52.

How do you drop 6 cents on almost 400,000 sold, but gain 10 cents on only 40,000 shares purchased?

Answer: Someone desperately trying to affect the picture ala James Cramer!

Anonymous said...

What's the new firewall price? .01Cents?

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This is one of those rare occasions that the floor is higher than the price. Since it has not traded on the open market, the floor remains .50 cents, even though the actual price is .46.

At this point in MNI's history though, it is all pretty much irrelevant. McClatchy effectively set their own valuation with the bond offering at between .18 and .33 cents. Anyone paying more is speculating or day trading.

Jay Fredrickson said...

When, oh when, will Gary Pruitt be fired? His latest plan to try to hoodwink bond holders into switching out of bonds and into stock fell 91% short of plan. It is so obvious to me that everything Pruitt has done to this company in the past two years has had only negative impact on the stock price.

If an advertising sales rep missed their goal by 91%, they would and should be fired. If a reporter missed 91% of the stories on their beat, they would and should be fired. If a carrier delivered the paper to only 9% of subscribers on her route, she would and should be fired.
Gary Pruitt's most important role as CEO of MNI is to increase shareholder value and wealth. The stock price of MNI is off more than 91% in the past 2 years. How, and why, is this guy allowed to show up at work each day. HE SHOULD BR FIRED TODAY!!!!!

Anonymous said...

Barry Shlachter's asshattery caused the dip in share price, lol. Subscriptions are dropping because these hard-working Fort Worthians did not subscribe to a tabloid. Fire him and see it rise 20%, lol.

Anonymous said...

Anyone here got a solid idea to share on what really needs to be done to increase shareholder value? Seems all I see is much critique of the past and few ideas and little conversation on what really needs to be done.

Anonymous said...

Anyone here got a solid idea to share on what really needs to be done to increase shareholder value?




There is only one possible way and eliminating current shareholder value is the result of doing so. Bankruptcy with court supervised oversight in restructuring without the current leadership and control by a single family is the only way to save the company.

This is what Pruitt et al are fighting at any cost as it excludes them.

McClatchy Watch said...

8:11 I agree that bankruptcy would be good for the company, because bankruptcy would require reorganization -- including getting rid of the dysfunctional board plus Gary Pruitt.

The Minneapolis Star Tribune will probably emerge from bankruptcy later this year stronger than ever -- partly because they changed leadership.

Anonymous said...

Meanwhile... Pru The Magnificent has been busy compiling his song list for his next speech.... this time Michael Jackson songs ! What song will he choose ?

Anonymous said...

Ever thought of re balancing of indices today? There were a lot of stocks with an unusual trading pattern today.

@ 8:11
In most Chapter 11 filings management stay on board. So a Chapter 11 filing would not help you getting rid of Mr. Pruitt.

Anonymous said...

Ever thought of re balancing of indices today? There were a lot of stocks with an unusual trading pattern today.

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Oh, you missed the news about McClatchy being dropped from the Russell small cap?

Publishing was down .71% so that isn't it.

Face it. Failed bond swap combined with Fitche's declaration of default as a given, combined with RR6 on unsecured debt was all the hammer that remaining institutions needed.

They can't be seen as holding MNI when their reporting period comes around.

Anonymous said...

@ 10:47

Face it there were a lot of stocks that traded unusual. Take CNO: advanced 30% for no reason on heavy volume.

BTW Fitch believes there will be a high risk of default they do not take it for given like you said. But I did not expect anything other than biased comments on this blog.

Anonymous said...

Anon 1:04

Another lib, "We just don't know", "It's the darn economy" argument.

Melanie, is that you?

So you must be a buyer of their stock, aren't you!

Anonymous said...

This does not look good.

Anonymous said...

1:04 AM You're the same F(*K that was in here pretending that McClatchy had turned the corner when it hit .70 cents and the same person that wrote the 3:48 post. You're a fool.

While you're out pumping your failed business model, look up RR6. Zero chance of recovery.

Then run along and check the definition of "DEFAULT"

Anonymous said...

But I did not expect anything other than biased comments on this blog.


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What does this mean to you Mr Genius?
(BTW, it didn't come from this blog)

"Fitch has believed that McClatchy has an untenable capital structure relative to the prospects for its future cash flow generation. The ratings reflect Fitch's belief that default is imminent or inevitable."


Now, seriously. Do you have a lot of money tied up in MNI? I am thinking that you must because your portrayal is down right dishonest.

Anonymous said...

@ 8:01
I have some money invested in McClatchy and believe (like Fitch is doing) it will return a good gain.

@ 7:55
"While you're out pumping your failed business model, look up RR6. Zero chance of recovery..."

I really do not care what rating agencies are saying (or better "believing". They lost their credibility during the real estate crisis.

Anonymous said...

@ 8:01
I have some money invested in McClatchy and believe (like Fitch is doing) it will return a good gain.





Do you have a reading comprehension problem?

Please state a single instance where Fitch says it will return a good gain?

Even secured debt that you cannot obtain has only a 31% chance of returning their initial investment.

Do yourself a favor. Save your allowance. I say this because there is no adult that can be as nutty as you.