Sunday, January 11, 2009

N&O’s big delisting story ignores McClatchy

The liberal/leftist Raleigh News & Observer is owned by the financially struggling McClatchy Company (stock –MNI- is down from a five year high in the mid-70s to about $1.)

Saturday's major story on the N&O's Business page begins:

At least two Triangle companies are being delisted from major stock exchanges, and several more could follow if their fortunes don't improve -- moves with negative ramifications for companies and investors.

Analysts tend to shun publicly traded companies that are delisted for failing to meet minimum exchange requirements, reducing the flow of useful information to investors. There are also fewer investors willing to buy the stock, which can end up depressing prices.

For the companies, meanwhile, being delisted makes it more difficult to raise money by selling stock. It's also a blow to their prestige ….

Shares of companies delisted by stock exchanges such as the New York Stock Exchange and Nasdaq move to over-the-counter services such as the OTC Bulletin Board and Pink Sheets' Electronic Quotation Service. ….

The entire N&O story’s here.


My comments:

The N&O story ignores McClatchy which is struggling to avoid delisting.

So why doesn’t the N&O mention McClatchy?

I think the N&O editors would say because the story focuses on “Triangle companies” and McClatchy is a national company.

But that doesn’t wash.

The story reports on R. H. Donnelley’s troubles and at the company’s website we learn it employees over 4,000 people in 28 states. It also claims to have strong online presences targeting many regions of the country.

If you read McClatchy Watch you know the McClatchy's been very reluctant to discuss openly its disastrous financial situation with not only delisting a real possibility but its $2 bil in bonds rated “junk.”

I think that’s why the N&O today didn’t include McClatchy in its delisting story. But it sure belonged there. Most people who work at the N&O can tell you that if they trust you not to quote them.

Speaking of McClatchy Watch – it’s a finalist for Weblog Award 2008 Best Up and Coming Blog.

You can vote for McClatchy Watch every 24 hours and I do here.

McClatchy Watch is a fine blog. If you haven’t been there, take a visit, and then please consider giving McClatchy Watch your vote here.




Anonymous said...

John, you have a layman understanding of the law — and that's being generous — and, as evidenced by this post, no understanding of business. RHD is based in Cary. And McClatchy would not have been a focus of the story you reference because delisting procedures have not been initiated. Every other company mentioned has been warned by the respective exchange about delisting.

Stick with something you (pretend) to know.

JWM said...

Anon @ 11:15,

If RHD, which operates nationwide, is a “local” company because its “based in Cary,” what’s Nortel doing in the story? It’s "based" in Canada!

McClatchy has traded in penny-stock territory and is in very real danger of being delisted.

From McClatchy Watch on Jan. 2, 2009: “McClatchy bought itself more time from the looming threat of being delisted from the New York Stock Exchange, thanks to its strong performance Friday.”

See also these reports:

I gather you’re OK with our “local” and McClatchy’s Raleigh N&O running that story without telling readers McClatchy has traded recently in delisting territory.


Anonymous said...

11.: A little snarky there, aren't we?