The McClatchy Company (NYSE:MNI)

CAPS Rating: 1 out of 5

The Company is the newspaper company in the US, also has a robust network of internet assets, including local websites in each of its daily newspaper markets, offering users information, comprehensive news, advertising, e-commerce and other services.

Recs

13
Player Avatar TMFUltraLong (99.95) Submitted: 1/6/2010 7:27:49 PM : Underperform Start Price: $4.63 MNI Score: +9.90

Well, here we are at round two with one of my favorite garbage stocks. I'm just going to re-post what I wrote in the garbage stock blog about McClatchy aside from slightly adjusting the debt figures. It was and still is a pure garbage play.

McClatchy is a newspaper company that owns and operates 30 daily newspapers and roughly 50 non-local publications. It just so happens that they also reported their Q3 figures today which showed just how deep they must go into cost-cutting to meet their figures. Although they reported a 28 cent quarterly profit, they saw Q3 revenues dip 28% and this is a trend that should continue going forward. Really, how many more jobs need to be cut? Well, it doesn't matter if they can't get ad revenue up and with their online business being only 1/6th of the pie and only up 3% for that matter, I say they're screwed! Couple that with 1.93 billion dollars in both short and long-term debts and even with profitability they'll never climb out of this mess they're in.

UltraLong

Report this Post 3 Replies
Member Avatar dragonLZ (99.59) Submitted: 1/7/2010 8:16:54 PM
Recs: 2

I dare you not to close this pick for at least 3 months...
Didn't you hear this is the quarter when MNI is going to break through the roof?
While you might score 5-10 points on a brief pullback, I'm confident you'll be down at least 50 points by the end of this quarter.
Remember, I dare you... :)

Member Avatar dragonLZ (99.59) Submitted: 3/24/2010 4:18:34 PM
Recs: 0

After being down 25 points, UL is now +1 point on this call. So, I guess I was wrong again...
Well, I'm still learning, I guess...

Member Avatar dragonLZ (99.59) Submitted: 4/14/2010 12:51:18 PM
Recs: 0

Very tricky stock, this MNI.
Now, UL is down 22 points and MNI is over 6 bucks.
Very, very tricky...

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