Posts for Ticker ‘GHS’

Companies Hit Hardest By Credit Crisis (AAPL)(SIRI)(CC)(DIS)(WMT)(MCD)

Updated: 31 October 2008

Angrybear_2Not all companies and industries will be hit equally hard by the consumer credit crisis. Operations such as Procter & Gamble (PG), McDonald’s (MCD), and Wal-Mart (WMT) may be safe. They either sell things people can’t do without or offer inexpensive goods and services that consumers can afford during a tough period. McDonald’s reported earnings today and its same-store sales were up in every region.The stock traded up on a day when the overall market was swamped by selling.

If the credit crisis gets substantially worse and only the most stable companies with the highest credit ratings have access to cash, some will not be able to maintain inventory. Other firms will be affected because their target consumers no longer have any discretionary income. The head of AutoNation (AN), the largest car dealer chain in the US, said that even his prime customers cannot get bank loans for new cars in many cases. "The banks are looking for every excuse possible to say no and they are saying no to good customers," Reuters quotes him as saying.

Neither set of companies has a bright future, but the ones who cannot finance their operations and inventories face almost immediate consequences

Read More »

Posted on: October 2, 2008 – 8:01 pm in Economy, , , , , , , , , , , , , , , , , , , , , ,

The 52-Week Low Club 9/16/2008 (AIG)(WM)(MER)(CEG)(GHS)

Sad_clownConstellation Energy Group (CEG) falls on fears of link to the Lehman bankruptcy. The company says no. The shares plunges to $13 from 52-week high of $107.97.

Gatehouse (GHS) shows why it’s a bad time to be a newspaper company. It slips to $.40 from 52-week high of $13.50.

Washington Mutual (WM) sells down and then recovers. It hits $1.50, down from 52-week low of $39.25.

Merrill Lynch (MER) also starts down and springs up. The stock sells off to $16.25 from 52-week high of $78.66.

AIG (AIG) is another stock which drops and recovers. Shares are down to $1.25 from 52-week high of $70.13.

Douglas A. McIntyre

Posted on: September 16, 2008 – 2:57 pm in HI/LOW, , , , ,

24/7 Wall St. Most Overpaid CEO Of The Day: Gatehouse (GHS) CEO Michael Reed

Newspaper_2Newspaper stocks are way off as the industry struggles with falling circulation and advertising revenue. But one company, Gatehouse (GHS), stands out as being much worse off that the rest.

Today, research firm Morningstar wrote, "We think GateHouse’s equity is worthless. The company has been an aggressive acquirer, which resulted in an unmanageable debt load."

Read More »

Posted on: August 18, 2008 – 9:17 am in Old Media,

The 52-Week Low Club (ELN)(GHS)(GFI)(CBS)(TOMO)(BIIB)

Sad_clownElan Corporation (ELN) Problems with one of the company’s major drugs. Falls to $9.55 from 52-week high of $37.45.

Gatehouse (GHS) More poor newspaper earnings raise issue of whether company is viable. Falls to $.48 from 52-week high of $17.43.

Gold Fields (GFI) Tough earnings and COO out. Off to $9.98 from 52-week high of $19.92

Read More »

Posted on: August 1, 2008 – 2:43 pm in HI/LOW, , , , , ,

The 52-Week Low Club 7/16/2008 (STX)(GCI)(GHS)(OESX)

Seagate (STX) Misses numbers and gets pounded. Down to $14.27 from 52-week high of $28.91.

Gannett (GCI) Advertising revenue falling fast. Drops to $14.62 from 52-week high of $55.37.

Gatehouse (GHS) Another big newspaper stock sells off to $.97 from 52-week high of $19.

Orion Energy Systems (OESX) Cuts revenue goal. Moves down to $4.48 from 52-week high of $22.46.

Douglas A. McIntyre

Posted on: July 16, 2008 – 2:58 pm in HI/LOW, , , ,

Gannett (GCI): USA’s Largest Newspaper Company Takes A Hit

Even though the market expects poor results from newpaper companies, the actual results can come as a shock. Gannett (GCI) is off over 5% to a 52-week low of $15.93 on poor numbers.

GCI preliminary 2008 second quarter earnings per diluted share from continuing operations were $1.02 compared with $1.24 per share in the second quarter of 2007. The preliminary results, however, do not include non-cash charges to be recorded in the quarter, which have not yet been finalized, for the impairment of goodwill, other intangible assets and certain other assets

Total operating revenues for the company were $1.72 billion in the second quarter compared to $1.91 billion in the second quarter of 2007.

At USA TODAY, advertising revenues declined 16.6 percent in the second quarter compared to the year ago quarter. Paid advertising pages totaled 831 compared with 1,034 in the same quarter of 2007.

Internet ad revenue was not front and center in the company’s earnings release, which probably says a mouthful.

Due to the news, shares in Gatehouse (GHS) are off almost 5% to $.99. Shares in McClatchy (MNI) are down 2% to $4.61, and shares in Lee (LEE) are selling down over 1% to $3.17.

Douglas A. McIntyre

Posted on: July 16, 2008 – 8:42 am in Old Media, , , ,

The 52-Week Low Club 7/15/2008 (NWS)(CBS)(DAL)(UAUA)(WB)(MS)(AIG)(C)(MER)(GHS)

Gatehouse Media (GHS) Newspaper company down again. Falls to $1 from $19.

Merrill Lynch (MER) More write-off fears. Sells off to $23.64 from 52-week high of $89.23.

Citigroup (C) Bad Q2 on the way. Dips to $14.01 from 52-week high of $52.97.

AIG (AIG) Gets stuck in financial sink-hole. Runs off to $19.73 from 52-week high of $70.13.

Morgan Stanley (MS) Down on balance sheet concers. Falls to $29.60 from 52-week high of $73.55.

Wachovia (WB) Analayst downgrades shares. Drops to $7.80 from 52-week high of $53.10.

UAL (UAUA) High oil prices at the start of the day move stock off to $2.87 from 52-week high of $51.60.

Delta (DAL) Same fuel-related concerns. Sell off to $4 from 52-week high of $31.80.

CBS (CBS) Worries that recession will hurt ad sales. Drops to $16.23 from 52-week high of $35.75.

News Corp (NWS) Similar concerns about ad climate. Down to $13.97 from 52-week low of $24.95.

Douglas A. McIntyre

Posted on: July 15, 2008 – 2:52 pm in HI/LOW, , , , , , , , , ,

The 52-Week Low Club 7/14/2008 (CAL)(UAUA)(MNI)(GHS)(WM)(FHN)(WB)(LEH)(MER)

Washington Mutual (WM) Concerns mortgage firm will make it after government takes over IndyMac. Falls to $3.03 from 52-week high of $42.93.

First Horizon (FHN) Same fears as with WM. Drops to $4.52 from 52-week high of $39.03.

Wachovia (WB) Market looking for more big write-offs. Sells down to $9.91 from 52-week high of $53.10.

Lehman (LEH) Is it the next Bear Stearns? Dips to $12.91 from 52-week high of $74.09

Merrill Lynch (MER) Joins the panic. Down to $25.47 from 52-week high of $89.23.

Sun (JAVA) Concerns that revenue is falling. Down to $8.69 from 52-week high of $25.04.

Gatehouse (GHS) Will newspaper chain makes it debt service for the year? Drops to $1.11 from 52-week high of $19.

McClatchy (MNI) Same as Gatehouse. Down to $4.82 from 52-week high of $28.73.

UAL (UAUA) As airlines cut more costs and oil rises, situation gets worse. Off to $3.36 from 52-week high of $51.60.

Continental (CAL) Another airline. Down to $6.63 from 52-week high of $38.79.

Douglas A. McIntyre

Posted on: July 14, 2008 – 2:55 pm in HI/LOW, , , , , , , , ,

The 52-Week Low Club (MNI)(BAC)(C)(MER)(GHS)(MI)(FRE)(FNM)

Fannie Mae (FNM) hit by rumors that it and Freddie Mac may have to raise $75 billion. Drops to $14.65 from 52-week high of $70.57.

Freddie Mac (FRE) sells down to $10.28 from 52-week high of $67.20.

Marshall & Ilsley (MI) Analyst predicts loss for company. Dips to $12.24 from 52-week high of $48.37.

Gatehouse (GHS) The plight of debt-laden newspapers gets worse. Sells off to $2.13 from 52-week high of $19.10.

Merrill Lynch (MER) may have to raise more money. Moves down to $29.84 from 52-week high of $89.23.

Citigroup (C) hits a new low almost every day. Drops to $15.80 from 52-week high of $52.97.

Bank of America (BAC) gets sucked under by sell-off in financials. Dips to $21.10 from 52-week high of $52.96.

McClatchy (MNI) Another newspaper company hits bottom at $5.11 from 52-week high of $28.73.

Douglas A. McIntyre

Posted on: July 7, 2008 – 2:50 pm in HI/LOW, , , , , , , ,

Open Letter To Michael Reed, CEO, Gatehouse Media (GHS)

Dear Mr. Reed,

It is time to eliminate the Gatehouse (GHS) dividend. With the company’s stock at a 52-week low, and down 86% from the period high, Wall St. does not believe that Gatehouse has the cash to pay its tremendous yield and make it debt service.

Most other public newspaper companies announced drops in advertising revenue of between 10% and 15% in May. Based on the last quarter, Gatehouse had razor thin operating margins, and debt service of over $24 million.

With long-term debt at $1.2 billion, Gatehouse may not make it even with the dividend gone. It certainly has almost no chance if the payments continue.

Douglas A. McIntyre

Posted on: June 18, 2008 – 12:00 pm in Old Media,

The 52-Week Low Club (CNB)(WB)(GHS)(ZION)

The Colonial BancGroup (CNB) Concerns about balance sheet. Down to $4.12 from 52-week high of $25.50.

Wachovia (WB) The bigger the bank, the harder its falls. Drops to $16.96 from 52-week high of $54.54.

Gatehouse Media (GHS) Newspaper. Falls to $2.73 from $19.60.

Zions Bancorporation (ZION) Yet another bank stock sinks. Drops to $33.42 from 52-week high of $71.43.

Douglas A. McIntyre

Posted on: June 17, 2008 – 2:58 pm in HI/LOW, , , ,

The 52-Week Low Club (PPC)(PBG)(RCL)(GHS)(ACAD)

Pilgrim’s Pride (PPC) Downgraded by Credit Suisse. Down to $15.67 from 52-week high of $41.

Pepsi Bottling Group (PBG) Still troubled by problems at one of Coke’s bottlers. Down to $29.22 from 52-week high of $43.38.

Royal Caribbean Cruises (RCL) Getting killed like the rest of the travel industry. Down to $25.40 from 52-week high of $43.96.

Gatehouse (GHS) Analyst encouraging company to drop dividend to save money. Down to $2.79 from 52-week high of $19.60.

Acadia Pharmaceuticals (ACAD) Major drug trial failure. Sharp sell-off to $4.30 from 52-week high of $17.33.

Douglas A. McIntyre

Posted on: June 16, 2008 – 3:00 pm in HI/LOW, , , , ,

The 52-Week Low Club (WB) (GHS) (FITB)

Wachovia  (WB) Sitll concerns about faltering balance sheet. Down to $18.22.

Gatehouse Media (GHS) Another newspaper industry victim. Down to $2.98.

Fifth Third Bancorp (FITB) Announces it will raise money. Down to$12.97.

Douglas A. McIntyre

Posted on: June 13, 2008 – 3:01 pm in HI/LOW, , ,

Another Blow To Newspaper Stocks (GHS)(MNI)(GCI)(NYT)

The newspaper industry was hit with another downgrade today, astonishing because almost all of the stocks in the sector are at 52-week lows.

Wachovia cut its ratings on several chains including Gatehouse (GHS), McClatchy (MNI), Gannett (GCI), Lee (LEE), and The New York Times Company (NYT). According to the AP, "Analyst John Janedis expects total ad revenue to fall 10.4 percent in 2008 and 6.5 percent next year."

That kind of fall-off in revenue could be enough to undermine the ability of several of the debt-laden companies in the group to make interest payments.

It is now very likely that several of the companies in the sector will have to begin selling off properties by the end of the year. The firms may not be able to raise enough money to cover the entire amounts they have borrowed. That will leave their lenders hold the bags.

Douglas A. McIntyre

Posted on: June 13, 2008 – 8:11 am in Old Media, , , , ,

52-Week Low Club (ELY, GHS, GE, GM, GFI, MRK, Q, SHLD, JAVA, TSCM, VIA.B, CBS, AMR, AAI, DAL, UAUA)

Today’s 52-week low list was full of some of the usual suspects, and you can count airlines as the top group of 52-week lows after that breather in oil prices did not hold.  There were also many other stocks that hit 52-week lows today, and we didn’t even bother including any of the usual suspects in financials.  Here is a sample of the 200+ we saw today:

  • Callaway Golf (NYSE: ELY) is seeing the same old same old, fewer golf club and accessories being bought as consumers are strapped and have to actually work rather than play golf.
  • Gatehouse Media (NYSE: GHS) keeps sliding… is Chapter 11 near?
  • General Electric Co. (NYSE: GE) is getting farther and farther away from that $33.75 fair value we assigned for the end of 2008.
  • General Motors (NYSE: GM) is still appearing here, poorer consumers can’t qualify for new cars.
  • Gold Fields Ltd. (NYSE: GFI) is a surprise with high gold prices.
  • Merck Co. Inc. (NYSE: MRK)
  • Qwest Communications (NYSE: Q), wasn’t too long ago they juiced a huge dividend.
  • Sears Holdings (NASDAQ: SHLD) hit a 52-week low but that didn’t hold.
  • Sun Microsystems (NASDAQ: JAVA) is learning that the reverse stock split game isn’t a winning formula.
  • TheStreet.com (NASDAQ: TSCM) as financial subscribers may be less willing to shell out hundreds of dollars if their bullish investments have a hard time being that bullish.
  • Viacom (NYSE: VIA.B) and CBS Corp. (NYSE: CBS) as Sumner Redstone can’t save a crummy environment.

This list was far longer looking than you would guess by this short review.  Here are some of the airlines that hit new 52-week lows:

  • Airtran Holdings Inc. (NYSE: AAI), AMR Corp. (NYSE: AMR), Delta Air Lines (NYSE: DAL), and UAL Corp. (NASDAQ: UAUA).

Jon C. Ogg
June 12, 2008

Posted on: June 12, 2008 – 2:35 pm in HI/LOW, , , , , , , , , , , , , , , ,

The 52-Week Low Club (MTG)(LCC)(RBS)(BAC)(MER)(CAL)(GHS)(EWBC)

MGIC Investment (MTG) Money still moving out of bond insurers. Down to $8.75 from 52-week high of $62.94.

US Airways Group (LCC) Oil prices up driving airlines down. Company say fuel bill could move up $2 billion of year. Down to $3.11 from 52-week high of $36.81.

Royal Bank of Scotland (RBS) Still dropping for losses and concerns about balance sheet. Down to $4.18 from 52-week high of $11.50.

Bank of America (BAC) Worries over losses and buy-out of Countrywide (CFC) Sells down to $28.93 from 52-week high of $52.96.

Merrill Lynch (MER) Brokerage stocks still being hurt by Lehman (LEH) results. Sell off to $35.66 from 52-week high of $91.95.

Continental Airlines (CAL) Like the rest, pressured by high fuel prices. Drops to $12.08 from 52-week high of $39.79.

Gatehouse (GHS) Newspaper stocks continue to fall. Dips to $3.18 from 52-week high of $19.60.

East West Bancorp (EWBC) Regional banks keep falling on mortgage concerns. Drops to $9.86 from 52-week high of $40.88.

Douglas A. McIntyre

Posted on: June 11, 2008 – 2:58 pm in HI/LOW, , , , , , , ,

Gannett (GCI) Gives Up The Ghost

Gannett (GCI) may take as much as $3 billion in non-cash write-downs for some of its assets. It is that bad in the newspaper industry. The charge would cover as much as 20% of the value of Gannett’s properties.

Gannett can survive the accounting action, at least for now. Its debt is a modest $4 billion when it is taken against revenue and operating income.

Some of GCI’s smaller peers are not so lucky. Journal Register was recently kicked off the NYSE for trading below $1 longer for longer than the exchange rules allow. Newspaper companies including McClatchy (MNI) and Gatehouse (GHS) have lost over 60% of their market value in just a year. The borrowing they took on to buy other papers is so great that their debt service may swamp operating income.

All of this is likely to cause a tremendous auction of newspapers as the public companies that own them can no longer afford to stay in business. That actually may be good news.

The Journal Register bought a large newspaper group in Michigan just a few years ago. It paid $425 million. Based on JRC SEC filings, those properties may be worth less than $100 million now. But, for a buyer, justifying $100 million is easier than swallowing four times that.

Newspapers, and their reporters, may be able to survive the industry downturn if the value of the properties falls far enough so that the leverage for owning them is modest.

The destruction of the value of the newspaper industry may be what saves it.

Douglas A. McIntyre

Posted on: June 10, 2008 – 5:13 am in Old Media, , ,

The 52-Week Low Club (TASR)(EK)(GHS)(MNI)(WB)(WM)(MBI)(ABK)

Washington Mutual (WM) Concerns about the financial crisis burn like wildfire. Drops sharply to $6.14 from 52-week high of $44.19.

AMBAC (ABK) Sells off to $2.02 after downgrades. The 52-week high was $89.33.

MBIA (MBI) Also hit by downgrades and drops to $4.78 from 52-week high of $68.98.

Wachovia (WB) Flamed. Down to $18.22 from 52-week high of $54.54.

Gatehouse (GHS) Newspapers still hit hard. Falls to $3.50 from 52-week high of $19.64.

McClatchy (MNI) Another newspaper company sells off to $7.77 from 52-week high of $28.73.

Eastman Kodak (EK) Commodities costs are killing margins. Dips to $13.48 from 52-week high of $30.20.

Taser (TASR) Lawsuit set-back. Falls to $6 from 52-week high of $19.26

Posted on: June 9, 2008 – 5:47 pm in HI/LOW, , , , , , , ,

The 24/7 Wall St. Bankruptcy Odds Watch (AMR)(UAUA)(NWA)(GHS)(DAL)(LHS)(LEH)(CAL)(WB)(F)(MNI)(AIG)

There are the 24/7 Wall St. odds that several companies will have to file for Chapter 11 between now and the end of the year. These will become a permanent part of the website and the list will be updated once a week.

AMR  (AMR)             1 in 2          Lee Enterprises  (LEE)     1 in 15      Ford (F)              1 in 35
UAL  (UAUA)            1 in 4          Lehman  (LEH)                 1 in 25      McClatchy (MNI) 1 in 35
Northwest (NWA)      1 in 5          Continental  (CAL)            1 in 25      AIG (AIG)            1 in 35
Gatehouse  (GHS)     1 in 5          Wachovia  (WB)               1 in 25
Delta  (DAL)              1 in 10        General Motors  (GM)       1 in 30

Read More »

Posted on: June 9, 2008 – 2:25 pm in Turnarounds, , , , , , , , , , , , ,

Sam Zell And The Future Of News (NYT)(GCI)(MNI)(GHS)

Sam Zell took The Tribune Company private and probably regrets that every hour of every day. With the downturn in the industry, his huge debt load is like a boat anchor.

Zell has announced huge cuts in the amount of newsprint his papers like the LA Times and Chicago Tribune will use. He will chop the number of editorial pages to 50% of each property’s total. That means the home town newspaper is going to look very thin.

Zell has more debt than most news chains, but public companies like McClatchy (MNI) and Gatehouse (GTS) are not far behind him. They borrowed money to buy more newspapers. Their high long-term debt and falling revenue have taken their stocks down 50%, 60%, and in some cases 80% this year.

Zell’s move will spread from The Tribune to other newspaper operations. Revenue in the industry in now falling close to 10% a year. Even financially strong companies like The New York Times (NYT) and Gannett (GCI) can’t hold out without making similar large reductions. Online versions of their products might have saved them, but, at most of these companies, they are not even 10% of total revenue.

Internet news outlets are winning and it is just a matter of time before they will replace newspapers altogether.

Douglas A. McIntyre

Posted on: June 9, 2008 – 4:46 am in Old Media, , , ,