Testing new lows, Gannett stock tumbles 2%

Shares closed at $22.37 yesterday, after trading as low as $22.18 earlier in the day. GCI’s stock is now down 59% from a year ago, Google Finance says.

The yield has hit an obscenely generous 7.2%, following CEO Craig Dubow‘s reckless pledge to protect the dividend at all costs. “Return to shareholders begins any discussion about the use of Gannett’s substantial free cash flow,” he told the annual shareholders meeting in an April speech.

Dubow’s shameless Wall Street ass-kissing has cost the jobs of untold numbers of employees — while starving R&D and other crucial efforts needed to keep the company afloat. To be sure, Wall Street won’t call for a cut in the dividend. For that, Gannett would need a CEO and a board of directors with guts. 

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3 Responses to “Testing new lows, Gannett stock tumbles 2%”

  1. mr. whig Says:

    Mr. and Mrs. McClatchy were looking out the window of their tiny little home on Stockplummet Lane when a big moving van pulled up.
    “Who is it, honey? Who’s moving into the neighborhood?” the missus said.
    “Why I can’t believe my eyes. It’s the Gannetts! My, my,” Mr. McClatchy said. “My world, and welcome to it.”

  2. Anonymous Says:

    Record Breaking Bad News.

  3. Anonymous Says:

    How Low can it go: (from magicediligence.com)

    Adding to the black marks on the company is greedy management. The CEO earned 7 million dollars in bonus money in 2007, despite a drop in revenues, tightening margins, a lower return on capital, and a stock price down 30%. Don’t you wish you were awarded 7 million for that kind of performance?

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