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.
5 comments:
Even though it's common knowledge that you know nothing about business...look up Fortress Investments, the company behind GateHouse Media. Only a portion of the company is public, the rest is still owned by Fortress...a 45 billion dollar investment company. I would hardly call them a pyramid scheme....of which I'm sure you know all about.
GateHouse Media's business plan is to buy as many properties as possible, cut them to the bone, and continue buying more companies. Eventually, it will collapse on itself just as it has been doing. When your whole business is buying more newspapers and then decreasing the value of them, well, I guess, you are right, I must not know anything about business. I can't see how anyone expected this to be a long-term investment.
Hey Randy, When did you become privy to the business plan of GateHouse? Are you on the board now?
GateHouse Media's business plan is on file with the Securities and Exchange Commission. Their track record with the newspapers they have purchased has been no secret.
Lets see, Fortress Investments has been behind GateHouse since the beginning more than two years ago. That hasn't stopped the stock price from tanking so why does that matter now. The two commentors defending GateHouse are only showing the same kind of ignorance that the people running GateHouse are showing. GateHouse says in its business plan that online sites are supposed to be a big part of their revenue, yet last quarter, online revenues were 6 percent of their total revenue. They have a bunch of clueless sales people trying to run newspapers. Go back to selling ads.
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