This blog is mainly about the spectacular train wreck at The Sacramento Bee and its parent company, the McClatchy Company. But I also post about current events, the Iraq and Afghanistan wars, politics, anything else that grabs my attention. Take a look around this blog, hope you enjoy it.
Wednesday, July 29, 2009
McClatchy stock up 13% on heavy volume -- bumped -- MNI jumps 43%... what's going on??
McClatchy (MNI) shares are trading at $1.79 a share as of 11:38 EST -- 13% above yesterday's close. More than 1.6 million shares have changed hands.
Update: What's going on?! MNI closed at $2.27 a share, up 43 percent today. Unbelievable! . . .
39 comments:
Anonymous
said...
Could this be a turnaround? Is McClatchy gonna make it?
Stock prices will have some upside for newspaper chains in the short term because of recent "profit" announcements. McClatchy was at more than $4 a share at one point in the past year. Declining revenue is the monster to be confronted. Smart money will avoid print companies but there's always plenty of stupid investors trying to time it right for a payday. Good luck suckers.
Enough of the usual bullcrap. Does anyone have a clue as to what is fueling this sudden apparent, if momentary, turn around?
============== Short sellers bailing and they're pumping the stock like rabid dogs. Case in point Ariel's CEO two days after earnings was still trashing McClatchy. All of a sudden a day or two later he's had a epiphany and sees 5 or 6 quarters of earnings surprises. Enter...Daytraders.
Anyone with half a brain knows the only way that Ariel's prediction is possible is if the company misleads the analysts with their guidance, which of course is the McClatchy way. The whole thing is an advertising campaign to prop the stock up.
Value is still zero. Debt is still 2 billion plus and revenues are still in free fall with advertising doing the same.
On top of everything else, their subscription take was up only 2.9% on 100% price increase meaning that the subscription rate is also in free fall. Internet advertising down and their only bright spot in CareerBuilder just got competition from UnitedWeWork.org which is run by a number of members of the top companies in the world and it is FREE.
They're propping things up with suckers, all while jacking up their numbers by cannibalizing the company.
It is a last desperate attempt to survive after the limited default.
9:50 AM Now all of a sudden he is shilling for McClatchy because he now has a record of the worst performing financial managers in the world. They're deep into the bottom 10% and lost 98% of their value in McClatchy alone.
What is funny is that they're running the price up while the rest of the market is moving down. Tells you that a few individuals are intentionally trying to pump the stock up. At this price it is easy to do. Doesn't take much money at all.
WRONG: McClatchy no longer gives guidance to analysts
Correction: Analysts no longer cover McClatchy. Announced long before McClatchy announced their "Listen Only" conference calls. Two analysts are all that remain and one of those is getting ready for a career change.
WRONG: No newspaper took a 100% price increase.
Correction: on 50 to 100% price increases. Many papers increased as much as 100% over two different price increase, one of which was conveniently not mentioned or buried in the C sections.
11:32AM - Stop playing silly. The fact that only two analysts cover McClatchy doesn't mean the company isn't asked for guidance by far more "interested" parties.
On the circulation pricing issue, I think you're confusing single copy price with home delivery. Not one paper has increased home delivery by 100%. Since single copy is a small percentage of total circulation, the yield of any price increase would be small against total circulation revenue.
And if someone told you that there are then you should be complaining to them, not to a bunch of right wing idiots that don't give a rats ass about you or this company.
Yeah, why would I obviously post about raises and 401k matching when it will obviously not come true.
Fact of the matter is that no one would post that on here because it is not true (well a righty would because we all know that you tend to distort the truth).
Which is why I find it really funny because you know how us lefties are.
And pimpin the stock has never been done by me. I do remember seeing a post about someone predicting $2.15 by next year (I said $1.75 by next April...obviously I was wrong and I apologize for that).
a lot of folks are wrong. a lot of folks either want McClatchy to fail or believe its going to happen no matter what.
I honestly cant see print media being what it is today one year from now. It will slowly die. The Mcclatchy compnay will survive unless someone buys them out, and we all know that is not going to happen any time soon.
so let the baboons on here preach all they want. The fact is , the company is meeting there revenue projections, they continue to make there debt payments, and even there stock is steadily climbing. Its over 2 bucks now. Short lived? i have doubts about that now, i think Mcclatchy may have bottomed out. Now its the slow climb back up.
3:46 PM I don't know how to break this to you skipper, but short sellers are scrambling to find shares now. Big shorts coming soon and holders who lost their shorts are now going to be recouping losses.
You dont have to break nothing to me. I understand the market and what roll it plays in the survival of the company.
I clearly understand your viewpoint on this. I disagree with you however. I prefer for us to agree that we disagree. But i doubt your capable of it. I will not be back on this site for awhile. so have fun
This might explain some of McClatchy's thought process in cutbacks. It was part of an extensive Q&A the Sac Bee's human resources director sent out prior to the vacation burn guild vote: Q. Why does The Bee need to do this when McClatchy Corporate just announced a 2nd quarter profit? A. While McClatchy did report some good progress on managing through the recession, advertising revenues are still challenging and we must continue to keep the company safe. The Sacramento Bee’s current revenue trends make it clear that we need to further reduce expenses in the second half to meet our local profit targets. The one-week unpaid furlough had been planned as a way to make up for the revenue softness, but we are now seeking vacation usage as an alternative for reducing expenses.
7:26 PM Yep, right up till you consider free falling revenues across the board plus 70% operating costs equals inability to finance your debt in short order.
Combine that with continued cannibalization of an already decimated product equals, "they know we're selling trash" and you have a formula for disaster. Say good bye to the rest of your customers and die hard advertisers.
Soon enough, even the crowd you bet your future on won't even pay to read your propaganda.
7:35PM - I am not calling it. You are. I have no need to predict the demise or success of McClatchy. You, for some reason, do. It's obvious you're angry. I am sorry you feel that way.
When we arrive at the end, someone will be right and someone will be wrong. Sadly I believe you'll still be angry either way.
I hope they use some of these new found gains and fully fund their pension fund. Their MNI contribution is "below average".
============
Not going to happen. If they did that, then they would be out of business even faster. Letting it dwindle until the government takes it over is the only profitable way to do it.
McClatchy cannot meet all it's rightful obligations and stay in business. That is just the sad fact. They barely have enough cash to keep running and now, anything they raise has to go to paying down debt.
39 comments:
Could this be a turnaround? Is McClatchy gonna make it?
If your asking the McClatchy haters here, they'll have enough excuses to the contrary.
Oops, can't edit, oh well...
*you're (before the grammar snobs come along and point it out to me)
Enough of the usual bullcrap. Does anyone have a clue as to what is fueling this sudden apparent, if momentary, turn around?
9:19 They have turned the corner and are not going bankrupt.
I think people are just trying to make money on the runup. No turnaround as far as I am concerned.
We're talking a buck and change for stock. Hardly a turnaround.
While I have said that it could likely hit $2 sometime after Q1 next year, I cannot see any fundamental reason for this.
It does not appear to be shorts covering nor industry news (LEE reports tomorrow).
While I am sure the company will survive, even if only for a few years, this to me makes no sense (although I will take it).
Stock prices will have some upside for newspaper chains in the short term because of recent "profit" announcements. McClatchy was at more than $4 a share at one point in the past year. Declining revenue is the monster to be confronted. Smart money will avoid print companies but there's always plenty of stupid investors trying to time it right for a payday. Good luck suckers.
It was $35 a share in 2006. Never again.
Enough of the usual bullcrap. Does anyone have a clue as to what is fueling this sudden apparent, if momentary, turn around?
==============
Short sellers bailing and they're pumping the stock like rabid dogs. Case in point Ariel's CEO two days after earnings was still trashing McClatchy. All of a sudden a day or two later he's had a epiphany and sees 5 or 6 quarters of earnings surprises. Enter...Daytraders.
Anyone with half a brain knows the only way that Ariel's prediction is possible is if the company misleads the analysts with their guidance, which of course is the McClatchy way. The whole thing is an advertising campaign to prop the stock up.
Value is still zero. Debt is still 2 billion plus and revenues are still in free fall with advertising doing the same.
On top of everything else, their subscription take was up only 2.9% on 100% price increase meaning that the subscription rate is also in free fall. Internet advertising down and their only bright spot in CareerBuilder just got competition from UnitedWeWork.org which is run by a number of members of the top companies in the world and it is FREE.
They're propping things up with suckers, all while jacking up their numbers by cannibalizing the company.
It is a last desperate attempt to survive after the limited default.
That Ariel slime CEO admitted today he dumped 3.5 million shares of McClatchy earlier this year to buy more stock in another chain.
9:50 AM Now all of a sudden he is shilling for McClatchy because he now has a record of the worst performing financial managers in the world. They're deep into the bottom 10% and lost 98% of their value in McClatchy alone.
Yeah, Ariel shilling for MNI is just stupid. Wouldn't bring back a fraction of the amount lost.
Up to $2.15. weirdness. maybe pruitt got hit by a bus returning from the country club....
What is funny is that they're running the price up while the rest of the market is moving down. Tells you that a few individuals are intentionally trying to pump the stock up. At this price it is easy to do. Doesn't take much money at all.
CORRECTION DEPARTMENT
WRONG: "...if the company misleads the analysts with their guidance."
RIGHT: McClatchy no longer gives guidance to analysts.
WRONG: "...their subscription take was up only 2.9% on 100% price increase..."
RIGHT: No newspaper took a 100% price increase.
actually gannett and other newspaper stocks have gone up these last couple of days.
WRONG: McClatchy no longer gives guidance to analysts
Correction: Analysts no longer cover McClatchy. Announced long before McClatchy announced their "Listen Only" conference calls. Two analysts are all that remain and one of those is getting ready for a career change.
WRONG: No newspaper took a 100% price increase.
Correction: on 50 to 100% price increases. Many papers increased as much as 100% over two different price increase, one of which was conveniently not mentioned or buried in the C sections.
I just want my promised August raise!
Something is up with the stock price increase. There's some behind the scenes jockeying going on. No way McClatchy trading is this heavy.
11:32AM - Stop playing silly. The fact that only two analysts cover McClatchy doesn't mean the company isn't asked for guidance by far more "interested" parties.
On the circulation pricing issue, I think you're confusing single copy price with home delivery. Not one paper has increased home delivery by 100%. Since single copy is a small percentage of total circulation, the yield of any price increase would be small against total circulation revenue.
There are no raises.
And if someone told you that there are then you should be complaining to them, not to a bunch of right wing idiots that don't give a rats ass about you or this company.
1:23 PM
Sorry leftie, it was our stock pimpin McClatchy fan that said that. Probably you.
Yeah, why would I obviously post about raises and 401k matching when it will obviously not come true.
Fact of the matter is that no one would post that on here because it is not true (well a righty would because we all know that you tend to distort the truth).
Which is why I find it really funny because you know how us lefties are.
And pimpin the stock has never been done by me. I do remember seeing a post about someone predicting $2.15 by next year (I said $1.75 by next April...obviously I was wrong and I apologize for that).
a lot of folks are wrong. a lot of folks either want McClatchy to fail or believe its going to happen no matter what.
I honestly cant see print media being what it is today one year from now. It will slowly die. The Mcclatchy compnay will survive unless someone buys them out, and we all know that is not going to happen any time soon.
so let the baboons on here preach all they want. The fact is , the company is meeting there revenue projections, they continue to make there debt payments, and even there stock is steadily climbing. Its over 2 bucks now. Short lived? i have doubts about that now, i think Mcclatchy may have bottomed out. Now its the slow climb back up.
3:46 PM I don't know how to break this to you skipper, but short sellers are scrambling to find shares now. Big shorts coming soon and holders who lost their shorts are now going to be recouping losses.
You dont have to break nothing to me. I understand the market and what roll it plays in the survival of the company.
I clearly understand your viewpoint on this. I disagree with you however. I prefer for us to agree that we disagree. But i doubt your capable of it. I will not be back on this site for awhile. so have fun
This might explain some of McClatchy's thought process in cutbacks. It was part of an extensive Q&A the Sac Bee's human resources director sent out prior to the vacation burn guild vote:
Q. Why does The Bee need to do this when McClatchy Corporate just announced a 2nd quarter profit?
A. While McClatchy did report some good progress on managing through the recession, advertising revenues are still challenging and we must continue to keep the company safe. The Sacramento Bee’s current revenue trends make it clear that we need to further reduce expenses in the second half to meet our local profit targets. The one-week unpaid furlough had been planned as a way to make up for the revenue softness, but we are now seeking vacation usage as an alternative for reducing expenses.
"further reduce expenses in the second half," sounds like MORE LAYOFFS a'comin'!!!
More layoffs are coming, but from a market standpoint, layoffs are a good thing to a point.
Unfortunately for McClatchy, they're well beyond that point, but it will not be recognized immediately.
At this point the takeaway is more layoffs equal better performance equal higher stock price.
Pretty simple, no?
7:26 PM Yep, right up till you consider free falling revenues across the board plus 70% operating costs equals inability to finance your debt in short order.
Combine that with continued cannibalization of an already decimated product equals, "they know we're selling trash" and you have a formula for disaster. Say good bye to the rest of your customers and die hard advertisers.
Soon enough, even the crowd you bet your future on won't even pay to read your propaganda.
7:35PM - I am not calling it. You are. I have no need to predict the demise or success of McClatchy. You, for some reason, do. It's obvious you're angry. I am sorry you feel that way.
When we arrive at the end, someone will be right and someone will be wrong. Sadly I believe you'll still be angry either way.
I hope they use some of these new found gains and fully fund their pension fund. Their MNI contribution is "below average".
Is it possible? An entire thread (and an entertaining one at that) with no political tangents! And exclusively about McClatchy. Thanks everyone.
I hope they use some of these new found gains and fully fund their pension fund. Their MNI contribution is "below average".
============
Not going to happen. If they did that, then they would be out of business even faster. Letting it dwindle until the government takes it over is the only profitable way to do it.
McClatchy cannot meet all it's rightful obligations and stay in business. That is just the sad fact. They barely have enough cash to keep running and now, anything they raise has to go to paying down debt.
Lee posts second-quarter loss.
Oops, meant third quarter.
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