CEO Gary Pruitt of the McClatchy News Inc. (mainly newspapers) has made it on Jim Cramer’s Wall of Shame, and Cramer cited MNI’s disastrous acquisition of Knight-Ridder which brought the stock down 82% as the reason for this special honor. The newspaper had been a well-run operation, but Cramer said the acquisition was among the worst he has ever seen. In addition, advertising revenue dropped 16% after subsequent declines. McClatchy has a history of making losing acquisitions, including the Minneapolis Star in 1998. Not only did Cramer give Pruitt a special place on the Wall of Shame, he gave him the middle name “Schemp” after the inept sidekick of the Three Stooges.
Pruitt may be looking for a job on the Obama campaign. The McClatchy family unanimously voted him off the board of directors on Tuesday.
McClatchy stock has crashed to less than a gallon of gas, about $3.20. There is no more wiggle room for stock offers. The stock smells like an old fish wrapped in the Sacramento Bee.