McClatchy Stock Down 81.7% in a year—Will Sac, Modesto, Fresno Bee be closed?

The dead tree industry is dying.  The Fresno, Modesto and Sacramento Bee, along with the SLO Union Tribune is owned by McClatchy—a company that has lost 81% of its value in a year and went down 37% in a day.  If you get the paper—or see it in a coffee shop—regardless of city, notice that the paper is as thick as toilet paper—take out the few ads and you get toilet paper—good enough to use in San Fran.

“In the last five years, the EPS of the company has been roughly -49.4%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 5%. The revenue of the company has retreated at an average annualized rate of about -7.9 over the last five years. The company recently recorded a drop of -12.5%, but this figure is rather unattractive.

No ads, no subscribers, no revenues—but this is the status of the entire industry.  The former LA Times, now the El Segundo Times was either going belly up or bought for a song—a billionaire Democrat donor bought it.  Newsweek, the venerable news magazine was sold for $1—not a typo, see here:

Fake News is cheap and losing money.  At some point somebody might notice.

Photo courtesy of prayitno, flickr

The McClatchy Company (MNI) Sinks 37.79%, Brings Too Much Of A Surprise


Melissa Arnold, Press Recorder,  11/15/19 

The McClatchy Company (NYSE:MNI) is one of the stocks that are taking the center stage today as the company shares are trading 37.79% or 0.529 points lower from last closing price of $1.4, reaching $0.871 at last check. So what’s going on with MNI shares anyway? The price is losing for the fourth day in a row and has dropped in 4 of the last 5 days and is down -36.65% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -146,367 shares, and in total 112333 shares valued at $97842 were seen changing hands compared with 258700 shares valued at $362180 recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the MNI stock is near its bottom.

The McClatchy Company (MNI) shares have notched a 3-month decline of about -36.65%, but has still tumbled -81.7% year to date. By comparison, the stock sank -81.78% over the past 12 months, while it slipped -49.64% over the 1 month. The company’s market cap is around $11.69M, with its short interest ratio standing at 18.19%.

In the current trading session for MNI, the stock witnessed two major price actions, it rose to a high of $1.26 and was down as much as $0.7754 at one point. The high recorded is very low when compared to their 52-week high which is $1.38. The 52-week high is now at -89.31 distance from current price. Their recent low of $8.25 represents a -36.07% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for MNI is $2.5, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of The McClatchy Company earned $-10.18 per share in the trailing 12 months and has a P/E ratio of -0.09. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 27.36 and lower compared to the sector’s average of 35.92. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. MNI also has P/S multiple of 0.01. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 1.51x.

MNI‘s last price was down -74.06% as compared to the average trading price of 50 days recorded at $3.36 while enlarging the period to 200 trading days, the average closing price was $2.62. At present, there are 8.35 million in the total number of common shares owned by the public and among those 4.69 million shares have been available to trade. The percentage of shares being held by the company management was 20.88% while institutions stake was 64.5%. The company has generated positive returns on equity over the last 12 months (24.3%). It managed to keep its gross profit margin at 93.4% over the past 12 months.

When assessing the full upside of the MNI stock, there is another set of technicals that should be looked into and considered. Its -66.43% decline from moving average of $2.59 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 0.21 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.

In the last five years, the EPS of the company has been roughly -49.4%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 5%. The revenue of the company has retreated at an average annualized rate of about -7.9 over the last five years. The company recently recorded a drop of -12.5%, but this figure is rather unattractive.

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.