McClatchy (MNI) shares are up 24 percent as of 12:30 EST. Already 804,000 shares have changed hands.
Possible explanation: Gannett reported better-than-expected earnings today, driving most newspaper stocks higher.
Update: MNI closed at 56 cents a share, up 33 percent.
And check out this story at Sacramento Business Journal: McClatchy shares gain on Gannett's good news
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30 comments:
haha! Ad sales down 12% and revenues down 17.8% and that is good news! I have heard of setting the bar so low that any news is good news, but this goes beyond all comprehension.
MNI is up because a short seller is covering.
1 week and we see how MNI is doing. My guess is it will be touted as a win when the declines are in line with Gannett's as MNI has repeatedly said that they cut expenses expecting that revenue would have a 30% year over year drop.
That would mean a 12% profit. :) J/K
Well, now your ONLY posting when MNI shares go up! What kind of a blog is this huh?
OK, I'm joking.
I see your trying to be fair to the poster of a day or two ago who complained.
9:50 - I post what seems significant to me -- and a 24% increase is significant.
I don't care about complaints from ankle-biters like that guy yesterday.
So if comment #1 is to be taken at gospel, my question to you is very simple.
Things weren't as bad as they thought they were so in your opinion should they just close up shop and go home?
If you go to the doctor because you think you had a heart attack but instead it was indegestion do you admit yourself to the hospital or do you say, "this is much better than a heart attack"?
The point is, IMO, people like you will never be happy until all newspapers go out of business. Kudos to you for being such a ray of sunshine on otherwise, okay news.
The "ankle biter" is a reader. A reader who has not bad mouthed you. I don't think your name calling was called for.
$70 million profit in the worst economy in a generation. And they beat expectations.
Yeah, this is such bad news for newspapers.
P.S. Where's the name calling as alluded to in the 10:48am post?
So if comment #1 is to be taken at gospel, my question to you is very simple.
Things weren't as bad as they thought they were so in your opinion should they just close up shop and go home?
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You're missing the point. Things ARE as bad as they thought they were. The press release simply sought to find the polished end of the turd.
It was smoke and mirrors. A puff piece designed take your eye off the fact that their revenues were down almost 20%.
There is no good news in this announcement other than we didn't decline as fast this quarter as we did this time last year. There is no upside to this announcement from a financial stand point. NONE!
The difference between 11:22am is, IMO, that you are a glass 1/2 empty person and I am a glass 1/2 full empty. I get the point. I am still employed in the business so I get the point every day. Revenues are down, that's no secret. They weren't as down much as initially forecasted. That in itself is a positive. Perhaps not to you but please don't come on here as thinking that you're some authority on this issue. You are entitled to your opinion. I think that your thinking is wrong but I accept it as your's with no need for insults.
$70 million profit. Down big but still a profit. That point cannot be refuted.
Never fear, Gary The Magnificent will make sure that MNI will still be doomed even if other papers "do well"
The difference between 11:22am is, IMO, that you are a glass 1/2 empty person and I am a glass 1/2 full empty.
I correct myself, "I am a glass 1/2 full person".
Perhaps not to you but please don't come on here as thinking that you're some authority on this issue.
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I think I am. I'm a CFA in this business for 20 years. Analyzing company financial is what I do you dumbass.
From a financial standpoint. There is no good news here, other than we're dying a little slower this quarter than we were last quarter. Nothing else.
I see that it's now come to insults. Nice to see that someone who is so high and mighty can take time out during the beginning of the fiscal year to blog about what you "think" you know.
Your opinion is just that. An opinion. I wish you nothing but happiness as you continue to forecast the demise of the profitable company.
Your opinion is just that. An opinion. I wish you nothing but happiness as you continue to forecast the demise of the profitable company.
You better go look real hard for that profit and learn the difference between profit and profitability. While you're at it, take a gander at GAPP and NON GAPP. It will help you to know when you're being hoodwinked.
"Results for the second quarter of 2009 include: a $42.7 million pre-tax gain related to the company's debt exchange ($26.1 million after-tax or $0.11 per share); $16.6 million in pre-tax costs related to workforce restructuring and facility consolidations ($10.3 million after-tax or $0.04 per share); $47.4 million of pre-tax non-cash charges related primarily to asset impairments in the company's publishing segment ($29.6 million after-tax or $0.13 per share); and a $28.0 million non-cash charge for asset write-downs ($24.2 million after-tax or $0.10 per share)."
11:57 So, does this mean that none of their gains were due to a better business climate, but on the backs of those fired?
Half full, half empty. Im a MNI is toast person.
Everyone on here can bash MNI and all papers and try to call it a "polished turd" in that revenues were still down.
Well you know what, Wall Street DISAGREES with you. Either they (millions of people) are stupid and you are smart...or just maybe it is the other way around (I tend to believe in Occam's razor thus making you the stupid one.
11:57 So, does this mean that none of their gains were due to a better business climate, but on the backs of those fired?
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What it means is that their results were based on, "special items." Were it not for them, the report would have been dismal as it could possibly have been.
All you really need to know is that A) The CEO was absent from the call (if he doesn't sign off he can't be held criminally liable)
and B)involved parties became irritated and ducked any questions about the possibility of violating debt covenants this year.
1:00 PM That is probably the dumbest post I have ever read. Look at their charts and tell us again how Wall Street loves your paper and millions do too.
I like the comment, “The press release simply sought to find the polished end of the turd.”
That is so simply correct, it made me laugh.
For two years the drum beat here is that McClatchy will go under. Keep on a wishing and a cryin but you lose.
Keep on a wishing and a cryin but you lose.
McClatchy will go under. That is a fact. When is the only question.
I once listened to an old-timer who said that everything will be OK when the economy turns around. Auto dealers will start advertising again. Realtors will start advertising again. Job ads will be plentiful. Everything will be OK.
Of course, this is the same old-timer who can't grasp the idea of posting a story TODAY about the government meeting he just attended.
It's that lack of net savvy that keeps this old-timer from understanding that the economic recovery will not extend to newspapers - at least enough to turn them around. There will be fewer car dealers. People will shop even more for cars via the Web. People will use the Web more and more to buy their next house. People will rely on Monster.com and SnagAJob.com to find that next job.
The $4,000 full page full color ads from Gottschalks will be gone. And the $100 a month badge ads from T-Mobile won't be enough to cover the old-timer's salary.
The genie is out of the bottle. Period.
3:30 Fact? You said that 2 years ago. Boring.
The Newspaper industry people don't get it. Advertisers are gone and will never return in the same way. You can't keep advertisers without readers. You can't keep advertisers when so much of the public perceives the newspaper as a biased tool of one political perspective. The advertiser will pursue the consumer ( who no longer reads the paper) and will chose environments that enhance the ad buyers brand, not diminish it.
As for McClatchy, stock goes up a little, it goes down a little. The fact is MNI is on a deathwatch as the cash drains away.
As soon as Macy's goes under, print will be on life support. And don't forget, the stock market was up more than 250 points today and MNI may have just rode its coattails to a good day.
3:30 Fact? You said that 2 years ago. Boring
Yes I did. In fact the day after the Knight Ridder sale finalized I started shorting it all the way down to $2.
Boring? Not for me. Watching McClatchy choke on their own ideological arrogance has been exciting and profitable beyond my wildest dreams.
Next stop, Panama Canal baby!
Re: [ankle-biters] ‘I don't think your name calling was called for.’
Poster’s comment was right out of the Saul Alinsky's Rules for Radicals. Call attention to mild remarks, while ignoring hateful name calling by radicals. He probably thinks everyone is as brain-dead as he is. Sadly, this garbage worked for the Halfrican’s election, but the jig is up now.
Just ask a realtor how many of their leads come from their webpage. Buyers see a yard sign and go to the web, they do not run out to buy a rag with three day old listings. Online, one can read all the home’s information, take a virtual tour, and it is free. Geeez, newspapers are so yesterday when it comes to real estate ads.
Geeez, newspapers are so yesterday when it comes to real estate ads.
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Classifieds too. The pumpers didn't mention the part about GCI's 40% decline in their PR release today.
i thought it was hilarious. The Star sent out a couple of guys to push their online advertising. Their big promo? Banner ads. You too can tie up The Star's banner ad for your area. Whoopee. I then pointed out to my colleagues that the vast majority of people never see banner ads owing to the availability of browsers with sophisticated ad blocking schemes. We also discussed how few leads come from newspaper ads. Good by. Another office of no sales. I didn't even have to mention I thought the paper sucked it was such a poor business decision and waste of resources.
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