The stock sank 7 percent, or $1.05, to $14.01 yesterday, near its lowest point in 10 years and 77 percent off its 52-week high of $24.76. The drubbing came after Lehman Brothers analyst Craig Huber slammed the Times' shares for being too expensive, compared with Gannett and McClatchy.
Shares in Lee Enterprises Inc. and Media General Inc. each fell more than 9% Monday, and The McClatchy Co. suffered the indignity of being kicked off an index of the 1,000 largest publicly traded companies.
McClatchy Co., owner of the Miami Herald and 29 other daily newspapers, dropped to a record low on the New York Stock Exchange after Deutsche Bank AG recommended selling the stock and cut its earnings estimates. Analyst David Clark, who took over Deutsche coverage of the newspaper industry today, lowered McClatchy's rating to ``sell'' from ``hold'' and also reduced the rating on publisher Lee Enterprises Inc. to ``hold'' from ``buy.'' Clark cut their share price targets and 2008 earnings estimates, citing falling sales in the second half.
The Chicago Tribune is eliminating about 80 editorial positions — roughly 14 percent of its newsroom staff — amid parent Tribune Company's campaign to cut costs as revenues decline.
The stock price of newspaper giant Gannett (GCI) has resembled a double black diamond ski slope over the past year....Gannett is in a business that will almost surely continue its decline for some time. Although quite cheap, and with a generous dividend that is safe for now, this one screams "value trap.
No clue as to why this is happening.
(All articles cited herein were found via Google News).