Remember that our blog community has been calling our tax breaks for the Kansas City Star for more than a year and reported the fact before ANYONE in this town . . . Sadly, just like most of the biz Downtown . . . The government subsidy simply isn't helping create a successful biz.
To wit . . .
KANSAS CITY INSIDERS CONTINUE TO POINT OUT THE CONSTANTLY TUMBLING STOCK PRICE OF THE KANSAS CITY'S STAR'S PARENT COMPANY!!!
It's somewhat painful but mostly hilarious to watch . . .
Today The Kansas City Star is officially owned by a penny stock company . . . Don't take our word for it, check their listing.
Even at that price, it's not a good buy.
So it seems that so many questionable deals won't be of much value to politicos who offered them as so many new media outlets rise up and Facebook really doesn't need their cash or care about KCMO since it doesn't matter in the aggregate.
As for their election and political commentary playing up happy news for their political benefactors . . . Just like their paper . . . Nobody is buying it.
We'll see but for the late night right now . . . We'll endure the nasty comments of so many Dead Tree Newsies looking in vain for a new gig or lamenting long ago glory days.
Developing . . .
Hey now, maybe somebody local come along and buy it.
ReplyDeleteI wouldn't mind seeing the Kemper or Hallmark Family Star.
That might be the only way to save it. Still like the coupons that don't come with malware.
Consider it, it's a good deal!
Ah, finally blew huh? No surprise there!
ReplyDeleteHell of a haircut they got today.
ReplyDeleteMeanwhile their minion editorial writers are even today preaching away the wonders and benefits of tax increases. Hilarious
ReplyDeleteFunnt, Noble Financial initiated coverage on shares of McClatchy in a research note on Friday, July 17th. They set a buy rating and a $3.50 price target on the stock.
ReplyDeletePlus @kcstar is really making fun of you tonight on Twitter. It's fairly merciless.
Sure, this blog is great for financial advice.
ReplyDeleteA out of work blogger raising complaints directed at the Star.
Oh, and you get youe baseball info here?
Ebola yet?
I do not approve of this message, I do like the taco bell in the cafeteria though!
ReplyDelete11:17 is shitting his pants. Nice try.
ReplyDeleteShowing that TKC's understanding of financial markets is right up there with his iron grasp of baseball, football, race relations, root causes of poverty, the human capital tied up in Toni Bones and 'Zo--the list is too long to chronicle here.
ReplyDeleteBefore you try to write it off as a bust at .85 check out the book value on the company--what it would be worth if it sold off the very price real estate it occupies in 30 markets, primarily in downtowns.
US investors caught up in the 40 billion dollar Chinese stock market dive might be living in their tour busses
ReplyDelete^^^^^^^
ReplyDeleteStill a dog with fleas at that price, my friend.
@1:13am
ReplyDeleteNothing's worth much of anything until and unless someone wants to buy it, makes an offer, and has the cash to close the deal.
And when real estate is sold at rock bottom fire sale prices, the value of other properties in down towns goes down.
The Star is every bit as much on debt-supported life support as the KCMO downtown renaissance and at some point the excitement of Christmas shopping is over and the January bills come due.
Fantasyland on the plains.
Their "book value" includes 1.4 billion of goodwill and intangible assets. Now I don't know what all that might include but given the company is only projecting pennies per share income going forward I would imagine those intangibles will be written off in the coming years resulting in a negative book value. It is possible the real estate is worth much more than book value but don't look for the company to close operations, sell the real estate and distribute the money to shareholders. Public companies use up all the assets before filing bankruptcy.
ReplyDeleteWhats wrong with you people? It would be so NOT Kansas City to invest tax payer monies in anything that succeeded. We have a legacy to protect here.
ReplyDeleteI have to say that this is incorrect information. McClatchy has two classes of stock. The Class B which is majority ownership (75% I believe) isn't priced on the public markets and is mostly held by the McClatchy family. The value of the Class B stock is really the Price Value of the company.
ReplyDeleteThat said, I am sure the Investor Relations Director is fielding quite a few phone calls from Class A holders (MNI)
McClatchy shares slide after Q2 ad sales plummet
ReplyDeleteShorts must be loving this stock.
NYSE New-Low Achievers: McClatchy Co.
ReplyDeleteHAHAHA!
How much longer will they be able to support the white elephant printing plant even with the 15 year taxpayer subsides approved?
ReplyDeleteTKC IS ON-TARGET HERE!!!!!!!!
ReplyDeleteThe beauty of the financial markets is that they reveal the truth about a company's perceived value every market trading day.
Everyone here who wants to talk about book value, 2 classes of stock, etc., should STFU and be buying MNI shares hand over fist, as much as you can.....if you actually think it's underpriced! If you're not buying, then you're just spouting BS.
As of TUESDAY 1:30 NYSE time, McClatchy (MNI) is at $0.85, having been as low as $0.75 earlier. And by the way, company insiders are NOT buying, and they should know what it's really worth.
12:43 I wasn't making any argument whether MNI was over or under valued. If I were I would have been sure to make the appropriate disclosures, of any position I may have. What I was stating, is that with companies that have multiple classes of stock, and particularly where one class holds the controlling interests of the company and is NOT publicly traded, you must account for this value.
ReplyDeleteThese recent legs down shouldn't be much of a surprise. As the Class A stock dips below a dollar (much like when it went below $5) many institutional investors are forced to liquidate their positions. Many institutions will not hold equities with market caps below $100 million or equity prices below $1.
Though since you bring it up, I suppose they must attach a value to the Class B whenever they issue these shares (be it for compensation) or when there is a tranfer, but even then I can imagine they attach a par value of $.01 like they do with the Class A.
FUTURE NEWS TODAY:
ReplyDeleteMcClatchy (MNI) to enter bankruptcy, or "reorganization" if you prefer.
Eliminate debt
Screw over non-executive employees on pension obligations
Break existing contracts with suppliers/contractors if favorable to company
Sell off assets or shop the entire package to bidders (with executive golden parachutes)