McClatchy Stock ‘Could Be Worthless,’ Analyst Says

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By: Mark Fitzgerald

Citing The McClatchy Co.’s high debt and shrinking revenue, a Morningstar report declares that the chain’s slumping stock “could be worthless.”

Tom Corbett — the Morningstar analyst who this summer similarly dismissed GateHouse Media Inc. shares as having a “fair value” of zero — said debt from McClatchy’s 2006 acquisition of Knight Ridder, added to declining revenue, means that the company will look to satisfy its creditors rather than its shareholders.

More details from the Morningstar report are at Fitz & Jen blog
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