McClatchy Back in NYSE's Good Graces
The McClatchy Company is back in compliance with New York Stock Exchange (NYSE) standards for continuing listing of its stock price.
Since being notified by the NYSE in February that it no longer qualified for listing, the nation's third-largest newspaper company has been restructuring and repositioning itself as "a 24-7 news and advertising company that can deliver in print, online, and to handheld devices," in the words of CEO Gary Pruitt.
Under new, more relaxed standards approved this week by the SEC, a company like McClatchy can now continue to qualify for listing as long as its stock price maintained an average closing price above $1.00 per share for any consecutive, 30-trading-day period.
During the crisis that has been shattering the U.S., newspaper industry, I've been increasingly impressed with management decisions at McClatchy. Rather than sit back like a deer in the headlights, Pruitt and team have turned what was formerly a newspaper chain and started transforming it into a player in digital media.
Investments in CareerBuilder, Cars.com, and Apartments.com have been instrumental in the diversification of revenue and are boosting the bottom line. Investors seem buoyed, as well, which is why with the company's stock has quickly risen from $0.40 in early July to close at $1.81 on Friday.
During such a long media recession, it is difficult for anyone to find the crystal ball that reveals which companies are going to pull through and rebound to financial health going forward, but to me, it's increasingly hard to bet against McClatchy.
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