Gannett's stock dived again today, closing at $6.09 a share, down 72 cents, or 11% -- the second consecutive day of steep losses. That boosted the stock's dividend yield further into nosebleed territory: 26%.Meanwhile, the New York Times Co. announced late today that it's slashing its dividend -- and its yield had only reached 16%. That's likely going to put more pressure on Gannett's board of directors to rethink GCI's dividend payout.
Here's a dumb question: What happens when Gannett stock drops to $0?
ReplyDeleteI won't...it will stop short of that.
ReplyDeleteAt which point, the company will be taken private, IMHO.
Think about it. All that stock that got paid to you has become worthless, meaning the company's cost will reduce to nothing on it.
As the light bulbs go off, I expect a lot of employees will be pretty pissed off when this happens.
$5 is a big horrible target. Mutual funds generally won't hold on to stocks below $5.
ReplyDelete