Buh-bye, GateHouse
A former co-worker just emailed to inform me that my old employer, GateHouse Media, is now worth 7 cents a share. Seven...cents...
Thanks to its nauseating plunge to the bottom of the deep end, GateHouse stock was de-listed from the NYSE today. It's market capitalization is now about $4 million dollars. Um, yeah. That means the Register Star could sell its $27 million press for scrap metal and come up with enough dough to buy all 100 newspapers in the chain.
This is what happens when a fledgling corporation builds an acquisitive business plan dependent on leveraging easy credit -- and then the entire global lending system collapses. It shows just how negatively Wall Street views newspapers that no investor has swooped in to snatch up the company; GateHouse's collective paper clip supply is worth more than $4 million.
Labels: work
posted by Nate at 8:31 PM
4 Comments:
I hope some day papes bounce back some day. Local stories probably have more immediate impact than federal.
Yes, I meant papes.
3:50 PM
They're honestly not going anywhere. Local news is still important and needed; if the Register Star folded tomorrow, there would be a new newspaper within a week because the demand is there.
It's just disheartening because Wall Street is punishing an industry that used to boast 30 percent profits because now it "only" makes 15 percent.
8:21 PM
Even worse today -- got a nickel?
Performance
GateHouse Media, Inc. (OT: GHSE) 1:29 PM ET on 10/27/2008
Last Price Change Open Day High 52-Week High
0.05
0.01 down (9.09%) 0.06 0.07 12.50
Volume Previous Close Day Low 52-Week Low
705,000 0.06 0.05 0.04
12:46 PM
When Lee bought Pulitzer, everyone was encouraged to buy stock in the new bosses - at the time (05) the stock was in the mid-40s. Even then, I was skeptical and stayed away. Today, that's at 3.29 - and that's after selling the Daily Chronicle/MidWeek for cash.
10:26 PM
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