Stockhouse, a Canadian website that provides stock information, says the GateHouse dividend will be reduced or eliminated and that the company is likely to begin selling some of its newspapers. Of course, the company's holdings include The Carthage Press, Neosho Daily News, Big Nickel, Pittsburg Morning Sun, Aurora Advertiser, and the Neosho Post:
With $1.3 billion in debt and shrinking operating income, the dividend is almost certainly going to be reduced or eliminated. That will kill the main reason for owning that shares. It also looks more and more likely that the company will have to auction off properties to pay down debt.
At the close of trading Friday, GateHouse Media's shares were selling for $2.61.