The News & Observer
's parent company, McClatchy, has stabilized its floundering stocks, for the moment, Poynter's Rick Edmonds is reporting.
Two weeks ago, the New York Stock Exchange threatened to delist the California-based media company
after stock prices fell below $1-per-share, the minimum threshold for the Stock Exchange.
But a $15 million stock buyback by the company—a move popular with companies seeking to shore up investor confidence—coupled with the decision to pay down almost $23 million in debt had McClatchy shares trading at $1.26 as of Monday.
Edmonds called the company's move a "slightly arcane practice." "The stock rally is significant, but there is no guarantee it will be sustained in coming weeks or months," he added. "Also McClatchy still trades for a little more than a third what it did at the start of the year."
The company declined to comment on the move with Edmonds.
As we noted two weeks ago, the Stock Exchange gave the paper six months to bring itself into compliance. McClatchy purchased The News & Observer
in 1995. The paper's revenues have been down in the first half of the year.