The conference call was more of the same. This company clearly has no workable 5 year plan. $900 million in debt, shrinking cash, no long term profit outlook. I'm still short and adding more to that position today if I can.
I have been wrong on this one, can't understand how this stays above $10 per share
This stock is collapsing and the price is now dropping below $10 as people now realize the company still has HUGE PROBLEMS in digital revenue growth. Too little, too late.
no. If I am wrong, I don't want to be stupid wrong. I still believe if Gannett wanted to buy this company, they would have done it when it was under $1. I also don't know if the once enacted poison pill is still in place, and the family is unlikely to sell and lose control.
But these are just my opinions, the market action sure looks like people feel this is a takeout target.
This short position is killing me, but I am still convinced this is just based on Gannett's recent acquisitions and the hope they will buy MNI. I don't think they will, the underfunded pension issue is a big one, and will be a drag on the deal.
I'd be fine if they did buy it, at least my pension would be safer, though still not guaranteed.
Now that you have clarified your laziness on your previous post, I agree that the companies you listed all have been disasters as far as return on investment for shareholders. None of those companies was done in by a SINGLE decision, however, but a series of mistakes along the way. As for MNI buying KRI, it was this ONE DECISION that remains the worst decision in the history of capitalism.
The chief marketing officer is a coke fiend who is probably snorting the white candy several times per day, literally blowing his money up his nose. Then he says " I know, why don't we just GIVE FREE FOOD AWAY for threee months and see how that works. Decisions like this can only be made by people high on drugs.
The pension fund is about $300 million short in total. Reach Local has a good product in Edge and they have some really good software and good leads management tools. The implications for Lee are a deep pocketed new digital competitor that knows how to manage Google and Bing pay per click programs, as well as mobile display ads and more. Its a good buy for GCI as most newspaper companies leave money on the table for digital ad buys, due to lower profit margins. I think this could cause some problems for Lee and other media companies.
This is so sad, the Lexington paper used to employ 500 people, it now employs 125 people. But don't worry, digital is on the rise, and we'll be just fine. Thanks Gary Pruitt, for mis-managing and overpaying for Knight Ridder, putting the entire company in the tank forever. It's really sad.
Gannett just bought Reach Local, so any digital gains MNI thinks they can make in any of their markets, just got A LOT tougher. At one point in time, Gannett was a much smaller company than Knight Ridder. MNI and Knight Ridder have been terribly run and lacked aggressive management in the corporate since 1985. Too bad.
Ive been short a lot of stocks for the past few months and didnt expect anyone to take out Reach local. It's a good fold in for GCI, no doubt.
My short position was obviously the wrong side. Nice call, me getting hammered but already back up, off the mat, and moving on. Oh well. Good luck
Any hope of a buyout offer from GCI just got pushed back as Gannett just overpaid for Reach Local, spending 188% more than yesterday's closing price. This instantly puts GCI in direct online competition with MNI in all of their markets. There would be no need to buy the print heavy MNI now that they have secured a digital foothold in Miami, Seattle, Kansas City, and all other MNI cities.
This will drop to $5 per share probably by Thanksgiving on this news alone.
been short for awhile and totally surprised by this action. Oh well, win some and lose some. Let's see what happens at the open. hammered today.
Dred, thanks for your unsolicited investment advice. I've been in this area for a long time, thanks anyway. I know what I am doing.
As far as your listing a number of companies, I'm not impressed. I said "decision' and you list companies? Not helpful to me in any way, shape or form. I stand by my comments, this is a $5 stock in 18 months, and under a dollar in 36 months. Buying it at under $11 and hoping for a rise is not investing, it's gambling, and it's a sure fire loser.
it's not about margins, it's about increasing revenues and eventually total net income. There is enough margin built in historically to withstand some compression there. The reality is, this is a $338 stock, TOPS.
What it does is generate a known frequent visitor customer base. They gather names, addresses, phone numbers etc and can market directly to frequent diners at relatively low cpm. It's a good way to increase relationships with current customers. We have noticed increases in store traffic in our twelve state survey, though still projecting that same store sales are off 18.5% for the 2Q.
sorry, meant to say it's headed to $5. NO WAY this thing ever gets to $50
Dred, last week you called me greedy. After another 2.5% sell off today, I think I made the right call. The company is limping along, owing more money than it will ever be able to pay back. They are selling real estate to fund a massively underfunded pension fund, with growing liabilities for payout each and every month, as more boomers retire. Yes, the newspaper industry has been a hot M and A segment lately, but so far, there appears to be no interest in this group.
Gary Pruitt's decision to overspend at the top of the market in 2006 continues to be one of the worst business decisions in the history of capitalism.
Within 18 months, this will be a $5 stock, within 3 years, it's back under $1. I have the patience to wait it out. Do you?