Raising pressure on Dubow, Gannett stock plunges 5%, closing below $20, in broad market downturn

GCI shares were clobbered today in another painful stock market meltdown — falling 4.9%, and crashing through the psychologically important $20 threshold. There’s no telling where it’s headed next.

Shares closed at $19.83 on unusally high sales volume: More than 6.1 million shares changed hands vs. the daily average of 3.7 million shares, Google Finance says. GCI stock is now down a shocking 30% in the past month vs. a much smaller 9% decline in the S&P-500 Index, a broad measure of stocks overall.

Gannett had plenty of company: Every newspaper publisher’s stock fell, except for GateHouse Media‘s. For comparison, the S&P-500 Index fell 1.8% and the Dow Jones industrial average fell 1.5%. GCI’s tumble was third worst:

• McClatchy: down 7.1%
• Journal Register Co.: down 5%
• Gannett: down 4.9%
• Lee Enterprises: down 3.7%
• E.W. Scripps: down 3.3%
• News Corp.: down 2.8%
• New York Times Co.: down 2.6%
• Washington Post Co.: down 1.1%
• Belo: down 0.3%

Earlier: Why Wall Street wants Gannett broken up

Imagining that ‘Dear Colleague’ e-mail
I know many of you are worried, and so am I. While I know a little about many things in Gannett, I am not expert enough to drill down into GCI’s finances to figure out what management may be contemplating next. Those sources have not come forward, yet.

But I’m sad to say that I’ve lately been imagining a “Dear Colleague” e-mail that you may receive at some point. I’ve seen hundreds of business stories over the last 22 years, quoting this nearly identical language. You need only insert [Gannett] for the company name to see what it would read like:

Dear valued [Gannett] colleague,

Today, your board of directors took several important steps designed to carry [Gannett] into a brighter future. We have accepted the resignation of Chairman and Chief Executive Officer [Craig A. Dubow] from the company and from the board. Also, your board has engaged Goldman Sachs to examine all of [Gannett]’s strategic alternatives, including significant asset sales.

We know this news is unsettling to you. But your board is committed to maximizing share . . . (and yada, yada, yada).

Are you a financial news/stock editor or reporter? I now need help dealing with Gannett’s stock price. If you could pitch in by writing something authoritative — analysis, Q&A — your increasingly nervous co-workers will appreciate it. E-mail me confidentially, using this link from a non-work computer; see Tipsters Anonymous Policy in the green sidebar, upper right.

[Image: Google Finance]