Yikes. The asking price for all three properties: $150,220,000. The intraday market cap of MNI on 20 June: $116,580,000. Of course, then there's the debt... But the value of this real estate exceeds the nominal market cap of the whole shootin' match by 29 percent. Of course, there's asking price and then there's selling price ... Still, just sayin' ...
@carp: HTCH is the poster child for frustrating stocks. I have no idea what happened Friday but the volume was 4.2 times the average. I don't think retail investors like us cause that in a stock like HTCH, which is moving very little these days because of the pending TDK deal. I am regularly checking EDGAR, the company website and the usual news outlets for some kind of information and have seen nothing. Could some institution or other investor with deep pockets have simply rolled the dice on $4 per share? Maybe but I doubt it. I think it is more likely that somebody knew something. The conversation between @smacys and @mariya below is informative. If correct, and there is truly some movement in the deal, then I suppose we ought to see a filing in EDGAR today or tomorrow.
Minutes away from the open and I still haven't seen any news. I expected to see something come out over the weekend or Monday before the market open but nope. Except for a strange little blurb from Zacks whose author seems not to be aware of the TDK buyout. Of course, the "author" was undoubtedly a computer algorithm so, you know....
.HTCH selling for $3.83? Be still my heart. One thing is for sure, we know it cannot possibly be that info about FTC approval has leaked. Because that would mean folks are trading, you know, on material nonpublic information and, gosh, that would be illegal so that never happens.
Agreed as regards future of the company but what makes a short position risky here is the possibility of a buyout that could require you to cover at a far higher price. The newspaper biz must and will consolidate (and already is, actually.) And if the GCI buyout of TPUB fails, as seems likely at this point, then GCI may turn its checkbook in the direction of MNI. Just my 2 cents. You didn't ask for advice and free is worth what you pay for it, as they say.
@ema: My short answer: I don't know. My broker is Scottrade. I held my CLGRF within a Roth IRA (yay!) and, thus, will pay no taxes on my gain. But I just checked and my CLGRF shares are, indeed, showing as a long-term gain in Scottrade's "Gain/Loss & Tax Center" in my account history. If I'm doing the arithmetic correctly in my head, my new SSRI position is showing with a cost basis that is based on what SSRI opened at today. It is possible that the very small financial compensation included with the deal (I think it was something like .001 CDN per share) is complicating things.
Yup. If Mr. Ferro truly has the courage of his convictions he should buy the whole company for something north of the $15 per share Gannett has offered. Then he can do what he likes with it. Otherwise, he and the Board of Directors have a fiduciary responsibility to shareholders, the owners of the company. They have not done their duty. Carl Icahn is right -- the management of public companies is all too often a bad joke, with ego-driven executives and too-compliant boards doing what they want instead of what they ought. I guess this is what happens when folks bond over 18-year old scotch and $75 steaks. Guard your wallets and invest accordingly.
Yeah. Feelings we all share, I think. If I'm not mistaken, the deal was announced Nov. 2, which means tomorrow (June 2) is our seven-month anniversary. Happy anniversary fellow HTCH longs. I'm no expert in M&A, but that just strikes me as too long for a deal this small. So it is difficult to escape the conclusion that something is "wrong" -- even if what is wrong is only repeated requests for information by the feds. Maybe our anniversary present will be a favorable announcement on June 2. Or not. I tend to believe the companies have been asked to make adjustments, as you suggest and as Uptab suggested a few weeks back, and the gears are turning on that.
The turning point IMO will be the June 2 shareholder vote. That vote will tell GCI how hard to push. Not sure they need a majority to press their case but they need a sizeable chunk. Anything less than, say, 40 percent (to pick a number out of the air) voting to withhold and I think the chance becomes at least 50-50 they just walk away. In two years, after the proposed TPUB reinvention fails, they will then buy the same assets for some fraction of what they're offering to pay. Shareholders will pay the price. But Ferro will still be rich.
I hope it's good news we hear May 31. I guess that is stating the obvious. Almost gave up and sold shares today. If news does come out Tuesday and it's not good I'm gonna be real #$%$ at myself for not selling. Market is closed Monday so Tuesday is next trading opportunity. If bad news breaks before the market opens the exit will be very crowded, especially for little guys like us. If news breaks during the trading day I suppose they will do one of those "trading halted for pending news" alerts that always seem kinda dramatic and fun when you don't have any skin in the ticker. Oh well. Compared to the guys who died very young that we honor on Memorial Day, my problems are all high quality problems.
Yeah. You left out the part about rich guys who buy media outlets so they can have a private plaything. Mr. Cramer's stock picks don't all shine, but these comments are golden. He is spot-on correct. TPUB Board of Directors, are you listening? Or, maybe a more appropriate question, do you care? Disclosure: No position in TPBU long or short, long GCI.
Right. It would be a horse of another color if Ferro were just playing hardball to exact ever higher offers from Gannett. And to be correct and fair, I have no evidence that isn't the strategy. But it sure looks like he is irrevocably opposed to a deal and doing whatever he can to block it.
This is obviously an attempt to beat back the merger. It is abundantly clear that Ferro does not want the merger and has some or all of the Board of Directors on his side. I think people holding or buying TPUB in the expectation the price is going higher may very well be disappointed. Lacking a shareholder vote in June that tells the board to sell I do not think there will be a sale. And the $70.5 million deal is just an attempt to control that vote. It is, in a sense, a variant of the gerrymandering of U.S.congressional districts that takes place every 10 years after the census. You know -- if the voters will not pick your guys then choose different voters. In the case of the $70.5 million deal, a new and large pro-Ferro voting bloc has been created. I will leave it to TPUB shareholders to decide on the propriety of that. I am long GCI but have no position in TPUB. For what it is worth, I would not hold TPUB in the face of recent news because if Gannett walks away TPUB shares are likely headed below $8 where they were when this whole thing began.
@wise: Well, not all "investments" are on equal terms. I would want to know what's in the fine print of that person's investment agreement before concluding that his (nominal) $15 share price is the same as the $15 you or I might pay in a retail purchase. I am not alleging anything nefarious, mind you. I am just saying the devil is in the details.