Recovering from a 15% plunge after a dismaying earnings report, Gannett's shares closed at $16.57, down 4.5%, on extraordinary volume: 16.4 million shares traded vs. the 4.8 million average. Still, the stock is now down 70% from a year ago.Among those hurt the most: Loyal Gannett retirees with too much of their retirement money invested in the company's stock.
[Data and image: Google Finance]
Well I thought 15.00 would be the mark of the upper house cleaning but it looks like they will restructure the wait till 10.00 a share! Investors are really taking a chance and a large hit off of these "do nothing, no chances" people running gannett! haha gotta laugh
ReplyDeleteAre they doing nothing? Not cutting staff? Seems like they are cutting staff to me.
ReplyDeleteHow much longer are they paying Jim? Not too long, right? I'm waiting to see how things look when that time comes and we see how all the pain of the layoffs effects the financial outlook.
Speaking of pain...Jim and his large salary and payout are probably not the real face of these layoffs. It's a little hard to feel too bad for him with Spain looking so nice and all. It really is. Imagine that's all management sees here too...
I'm not sure we're looking at the big picture accurately. Correct me if I'm wrong:
ReplyDelete1) The company HAS positive revenues, even though smaller profits than it used to have.
2) It's using those revenues to buy back its own stock at bargain basement prices. If the stock goes back up, the corporation could make a LOT of profit.
3) The company pays its 401(k) co-pay in stocks at list price, then immediately buy the older shares back at a cut rate. Gannett isn't losing money on shareholders cashing out at $16. (And, yes, I regularly move it out of Gannett stock, but I still lose, always lose, a portion of it.) Our 401(k) is subsidizing a still-profitable company.
4) While the stock price is down, the corporation can whine about how it has fallen on hard times. The staff doesn't balk about working longer hours, harder hours, not putting in for mileage or using their own cell phones etc., and those in unions are forced to made dramatic concessions that aren't likely to be given back if stocks are back to $40 a share next year and Gannett is selling those it's now buying for $16.
This "rough patch" could work out very, very well for the corporate CEOs.
anon7:40 p.m.,
ReplyDeleteDon't you know Gannett is the only company in the world cutting expenses these days, including layoffs, buyouts and early retirement?
If I stay employed for 25 more years, and save mega bucks, maybe I can retire and visit for a few days the area where Jim is living this summer. LOL. He is hardly the face of spurned Gannett employees.
The industry as a whole is suffering and that is the only reason wholesale changes haven't happened. Gannett is quickly on its way to $10, McClatchy to $4, Gatehouse to .50, and so on.
ReplyDeleteSo, Gannett's stupid mistakes have been hidden amidst newspaper turmoil. The real problem for Gannett is when things are going well and it is apparent that they were never a leader but more appropriately the kid looking over your shoulder in class cheating off your test but copying the answer wrong.
in light of New York times earnings report.(down 82%)
ReplyDeletehttp://emac.blogs.foxbusiness.com/2008/07/23/profit-plunge-at-the-new-york-times/
I would say Gannett is doing pretty good