The stock is trading in a range of 68-75¢ Pays no dividend and for all intents and purposes is dead money. What is the point in wasting your time with this. Dead money, dead stock, dead company, dead industry.
I hope you weren't shorting into the close clock. Tomorrow there is news out on LEE regarding the backstop deal with the lenders. That news is expected and likely to be good for the BK approval and consequently good for LEE.
You are of course welcome to roll the dice sir. The more shorts we have on this board the more likely we can enjoy a nice run when the shorts cover.
Yes but the losses are non recurring so eventually cash flow and earnings will come closer together. And cash is what they need to survive and thrive. You're welcome to short. I like short sellers. Eventually they have to cover.
Sorry Tradster, I see you short this stock, I appreciate your honesty.
While I don't see this as the same situation exactly, I invested heavily in SCSS under a dollar about 3-4 years ago, and made a very nice profit. Like SCSS, both companies overextended by thinking they could force growth, both were looking down the barrel of bk, yet had nice cash flow every quarter. Granted bedding and newspapers are not at all the same, but the cash flow wins out for me, in both instances....
The better company is AHC. They are 170 years old, the Dallas News is the only newspaper in the area, and they own other papers as well.
They have zero dollars in debt. LEE could definitely double at any time, but AHC can, and will, never go broke. They are selling for 100 million market cap and have 45 million in cash...and no debt.
LEE is just a short-covering play,or you are hoping for the idiot CEO to come with her fluff pieces. The bottom line is that they overpaid for some newspapers a few years ago, and they will never recover from that.
I have followed this since early 2009. I know all about it, as does everyone on Wall Street. It exists to make financiers money. It can never pay a dividend, and it can never be bought out.
There are so many better places where you can get 5-10 times your money with little to no risk at all. LEE cannot go to $7 in the next few years, and I am not interested in anything where I cannot make 10 times my money.
There are still a number of companies out there that are still coming out of the lows from 2008 or 2009. There were lots of small-cap opportunities back then that people watched go up 10-20 and even 50 and 100 times from the lows.
You need to go where nobody else is. This reminds me of the Citizens Republic Bank board. A bunch of people who totally disregard the real balance sheet. I owned both LEE and Citizens before, and I actually made over 30K on LEE in just 3 weeks back in July of 2009. But I saw how the CEO operated, and I got out. Even though the shares went higher after that, they have since dropped to near 2009 prices.
Why sit around and try to make 3 times your money? Go dig something up that is actually worth something to a 3rd party buyer.
Point well made suielman... which is why I believe most of us on the buy side of this board view the opportunity as a trading opportunity vs an investment opportunity (at least I do). I believe the market has mis-measured the likelihood of the pre-pack being approved, it has discounted that if the pre-pack is approved the common shareholder is not wiped out, and it has painted Lee with the worsened plaque of large-market newspapers (which is not as acute in Lee's markets) and it has mis-valued the strong cash flow Lee will have even after the refinancing (which is a today statement - certainly if worldwide interest rates rise the story would change since the interest is variable rate). I appreciate listening to the negatives because it provides me something to evaluate my assumptions against. I believe the market has this one wrong (and understandably so because the newspaper market is fairly ugly these days). I like it when this happens - it is called opportunity. We shall see who is right soon.
So it seems most of your points don't have much to do with LEE specifically, but more to do with the newspaper industry taken as a whole.
I can absolutely buy into the concept that newspapers are a shrinking industry, in fact what has been very obvious looking at the stock prices of companies like Lee and MNI is that this Industry has already done a whole lot of shrinking.
So I think it would be accurate to state therefore, the real debate is whether or not we've already seen the floor or if there is very much more sinking left to do. That having been said, when I look at other companies in this industry like MNI and GCI, I take comfort in the fact that Lee is not trading anywhere nearly as high as any of those companies are.
You are of course free to trade and post however and wherever you wish tradester, but as far as I'm concerned you haven't made any compelling points for why LEE in particular would be a bad investment. General analysis of the newspaper industry as a whole is not really interesting when you have a company that has filed for bankruptcy and is potentially emerging from that bankruptcy. The airline industry might be making a killing. That doesn't mean AMR is a good investment.
You need to address the concerns that are specific to Lee when it's obvious that the reasons the price is being pushed down at the stage have much less to do with a macro issues in the newspaper industry and much more to do with LEE's prospects with respect to financing.