First a brief corporate profile from the McClatchy Company which owns the liberal/leftist Raleigh News & Observer. Then some market news about McClatchy.
From a McClatchy PR piece - - -
The McClatchy Company is the third largest newspaper company in the United States, with 30 daily newspapers, approximately 50 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets, which extend its audience reach.
The websites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets.
McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The (Raleigh) News & Observer.
McClatchy also owns a portfolio of premium digital assets, including 14.4% of CareerBuilder, the nation's largest online job site, and 25.6% of Classified Ventures, a newspaper industry partnership that offers two of the nation's premier classified websites: the auto website, cars.com, and the rental site, apartments.com.
McClatchy is listed on the New York Stock Exchange under the symbol MNI.
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Now this link to a June 13 AP story – "Ahead of Bell: Newspapers downgraded."
That AP story led Douglas McIntyre, editor at 247wallst.com to post the following:
The newspaper industry was hit with another downgrade today, astonishing because almost all of the stocks in the sector are at 52-week lows.Folks, I think when McIntyre talks about firms not being “able to raise enough money to cover the entire amounts they have borrowed,” and thereby leaving their lenders holding “the bags,” he describing the kind of situation in which companies are forced to seek bankruptcy protection.
Wachovia cut its ratings on several chains including Gatehouse (GHS), McClatchy (MNI), Gannett (GCI), Lee (LEE), and The New York Times Company (NYT).
According to the AP, "Analyst John Janedis expects total ad revenue to fall 10.4 percent in 2008 and 6.5 percent next year."
That kind of fall-off in revenue could be enough to undermine the ability of several of the debt-laden companies in the group to make interest payments.
It is now very likely that several of the companies in the sector will have to begin selling off properties by the end of the year. The firms may not be able to raise enough money to cover the entire amounts they have borrowed. That will leave their lenders hold (sic) the bags.
He just doesn’t want to use the “B” word.
What do you think?
BTW – According to AOL money & finance McClatchy’s stock ended the day, June 13, in afterhours trading at $7.77, close to its 52-week low of $7.51 and down from its 52-week high of $28.73.
Hat tip: Archer 05
1 comments:
John,
'The Writing on the wall’ and it says ‘McClatchy manning lifeboats!’
Two headline stories today: www.freerepublic.com
McClatchy reorganization eliminates 1,400 employees.
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Miami Herald to reduce its staff by 250-----
The Herald is owned by McClatchy, the third-largest newspaper company in the country. The layoffs announced Monday were part of a McClatchy reorganization that will eliminate 1,400 full-time employees -- 10 percent of the company's workforce.
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Charlotte Observer to cut 11% of workforce----
McClatchy Co. announced the paper will eliminate 123 positions. Cites declining advertising revenue and increased competition from the Internet.
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