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The McClatchy Company Message Board

  • newspaper_advertising newspaper_advertising Oct 16, 2007 9:26 AM Flag

    3rd quarter results are horrible and will get worse

    So, what we have today is the first look of where the company stands, with more bad news to come once they figure out how much they over paid for the newspapers in Florida and California?

    The market will not like this news, as visibility is now reduced and we won't know until they file with the SEC in early November.

    What about the " no visibility past the 4th quarter line?". This is not a good sign, but at least it is honest.

    What Gary Pruitt said today, in laymens terms is, " we have no idea how bad the economy is, how bad it is going to be, nor do we know when it will start to improve. On top of that, we don't even know how much our company is worth."

    These comments are not good, I'd stay away here and wait until all the bad news flushes out. This stock could be at 14 in the next 60 days.

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    • While the stock could go lower and the third q results were horrible the management is doing a good job generating cash and reducing debt. Hard to believe they get kudos but the situatuion would be dire if they weren't doing such a good job running the business. I don't know where the bottom is in the economy or the stock price. Pruitt talks about much of the problem being cyclical and to a lesser extent structural. I am trying to figure out the structural rate of decline in the newspaper business... and then trying to overlay MNI's position with population growth markets to figure their rate of anticipated structural decline. Can anyone shed some light? Mr. Pruitt??

      • 1 Reply to imadeadcat
      • >>>I don't know where the bottom is in the economy or the stock price.<<<

        It's not the economy. The economy has been booming at all time rates. The stock markets are at all time highs. It's the simple fact that advertising revenues are getting hit badly by the web. Another reason GOOG is over 600. They are killing the traditional media. Not only the web, but ad revenue is suffering to billboards. Yes billboards. Digital billboards are cutting into the pie too. It's really a no hope situation. Maybe newspapers are destined to just be a free product for people if they choose. Remember the 8 track? How about VCR's. Things do change and it's the newspapers that are getting it now.

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