Why can’t investors see the wisdom of McClatchy paying billions for Times Mirror?

By Greg Michael

The arrogance that comes from editors who “managed” newspaper monopolies with 20 percent profit margins is breath taking.

On the day it completed its Knight Ridder takeover, McClatchy saw its stock fall to its lowest point in five years amid continued investor anxiety over the wisdom of the deal. Dale Kasler notes the stock has fallen 26.6% since McClatchy announced the deal March 13. “I’m certainly disappointed in the skepticism that the market has shown,” says McClatchy CEO Gary Pruitt.

Hello, Mr. Pruitt, the stock market does its homework. Your share price is a vote. You lost. Better take back the Dom Perignon and buy some Cooks sparkling wine instead! Times Mirror was not a good buy – instead it is a big goodbye from smart investors.

Advertisements

3 thoughts on “Why can’t investors see the wisdom of McClatchy paying billions for Times Mirror?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s