Is it a bad sign for a newspaper when the price of the stock is lower than the cost to buy the paper? Can’t be good. Lee Enterprises, publisher of the Arizona Daily Star, is now trading at 40¢. Lee had renegotiated the terms of their debt but judging from the market reaction it is not helping. The Tucson Weekly reported that Lee’s stock may face delisting from the NYSE because of the low price.
Espresso Pundit regularly covers the happenings with Gannet, Publisher of the Arizona Republic and Tucson Citizen. Unlike Lee’s stock, Gannet is a stellar blue chip, selling above $8 per share after bottoming near $6 a share.