[GCI shares never recovered after falling below $4 about 11 a.m. ET]
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Man, am I ever glad I got rid of all the Gannett stock I held in my 401(k) just as soon as Gannett gave me the ax in Little Rock, lo these 17 years ago. I think it was selling for around $40 in those days.
ReplyDeleteOh my. This just doesn't look at all good.
ReplyDeleteThese GCI suits must not be sleeping or eating well these days.
ReplyDeleteIt has been 5 percent down a day for the last two months. Hey, Corporate, you listening? Cut the bloat in the Crystal Towers, make USAT much more profitable, and do something.
ReplyDelete5:38: There is quite a number of folks in bloated Corporate who turned down buyouts last year, and begged to stay, still there. Go figure who's saving them.
ReplyDeleteThe Crystal Palace has been bad for business and morale since it opened. It's been one thing after another with that place. And it's not helping a thing to have it in one of the most expensive areas of the country. It is also comical that USA Today is there, too. I mean how doesn't Tysons Corner, Va., represent the USA? It is an elitist area run by an elitist corporation that is now watching everything fall apart.
ReplyDeleteIt's worthwhile remembering amid Jim's daily tracking of the stock performance that a company's managers are paid to manage a business, not a stock price. At least that's how it's supposed to work. Wall Street, of course, has its own priorities.
ReplyDeleteThat said, will the board cut the divy? Of course. They can, they should and they will.
Sure am glad I left in late 2004 and dumped my stock in early 05. I worry about my friends at USAT at can't leave or retire.
ReplyDeleteIf I'm not mistaken, the top 5 Gannett Corporate Execs (Dubow, Martore, Clark-Johnson, Moon and Davidson) combine to make in excess of $17,500,000 in compensation or approximately 2% of the total Gannett market value.
ReplyDeleteAnd that's just one year's salary.
ReplyDeleteto 6:05 pm
ReplyDeleteYou're right. The job is to manage the company, not the stock price. That's EXACTLY why Gannett is in the tank - they've been trying to manage the stock price while mismanaging the company as a result.
Sorry, Gannett employee's but "YES" this stock price could not have happened to a nicer bunch of management. They are the ones who drived it from 85.00 to under 4.00
ReplyDeleteMaybe time to cut the company cars for awhile there Mr. Dubow. Maybe sell the Jets also.
ReplyDeleteDo we bet Chapter 11 is going to be front page news?
Oh, for heaven's sake. We need a reality check. First, there's nothing "urgent" about stock swings during a recession. It happens, and not just to GCI. It will keep happening. Get used to it.
ReplyDeleteSecond, percentage swings are exaggerated when stock values are lower. A penny is the lowest measure we have, and it is a greater percentage of total value when a stock is at $4 than when it's at $40.
Third, "market cap" is not the whole picture. No one could swoop in and buy Gannett for $900 million. The enterprise valuation (market cap + debt - cash on hand) is what counts. So if GCI has a $1B market cap and $4B in debt, it would take someone with $5B to buy it out (depending on how much cash is on hand). Is there someone out there with access to $5B in this credit environment who wants to invest in newspapers? Didn't think so.
the stock market also closed at its lowest point in six years. below 7500. wonder if that might have had something to do with gannett stock falling? do ya think?
ReplyDeleteI'm thinking back to a year ago when they were telling me how great the 401k was and how I really needed to participate...
ReplyDelete.... I didn't.
whew.
yeah...but I'd take the GCI stock price from Six years ago....bet it wasn't under 4 bucks. Hi Sue.
ReplyDeleteIf I'm not mistaken, the top 5 Gannett Corporate Execs (Dubow, Martore, Clark-Johnson, Moon and Davidson) combine to make in excess of $17,500,000 in compensation or approximately 2% of the total Gannett market value.
ReplyDeleteThis is disgusting. Don't do as I do, do as I say. Sorry you can't pay your bills, feed your kids — but us at the top are fine! Remember good ole Craig didn't take $200,000! Now he can't buy that new set of golfclubs. He should be embarassed by this move. I honestly don't know he he sleeps at night. But remember, what comes around goes around. Someday he will understand the pain he has caused others. It may be 10 years from now, but I do believe in karma. Everything you do comes back to you — good or bad. Greed never improves anyone's life.
yeah yeah yeah....Karma. I have two words that says Karma doesn't work...BOB COLLINS.
ReplyDeleteyeah yeah yeah...Karma. I have two words for ya that says Karma doesn't work. BOB COLLINS
ReplyDeleteHi Sue.
Good points 8:34 PM, but your comments are far from the last, especially since you don’t need $5 billion. A controlling interest and/or better yet, support from majority owners would suffice as well. Plus, Gannett has value that could be unlocked, including pension/capital funds (used by a previous owner of a current Gannett paper), buildings/land, newspapers, internet interests, etc. – even fed-up employee’s shares to help. Package those items with a restructuring plan that puts debtors and large shareholders at better ease than the current self-absorbed, indulgent lot running things now and you might get farther than you’d think.
ReplyDeleteHello 8:34PM, you're suggesting the Gannet Stock price is the result of the recession? The stock fell by 50% between 2004 and 2007! Nice try but you can't separate management from performance when you go back nearly 6 years!
ReplyDeleteDubow and Martore: please step down and out - now.
ReplyDeleteWith a 40% dividend return at this price, the market is saying that it assumes GCI's dividend will be slashed or eliminated.
ReplyDeleteYes, there at least 12 who turned down the buyouts. Wow. That would have saved a whole lot.
ReplyDeleteIf you did not participate in the 401k it's a mistake. Why not take free money. You are getting fitty sents on the dollar. You can move from stock to cash, and be safe. So by not being in the plan you are kissing away a big part of your benes. Real smart.
ReplyDeleteHey 10:19, was the 401 match in Gannett stock or cash.
ReplyDeletelets pay Dudow another bouns for hard work he has done in 2008.
ReplyDeleteIt is a BAD financial move to not participate in the company 401K. It's free money, it's tax-advantaged and it's pretty much the only way you'll have any hope of a retirement, ever.
ReplyDeleteAlthough Gannett pays out its match in stock, you can sell it immediately (and I would always recommend employees sell 401K matches given in stock, no matter what company they work for).