Typically, having a stock trading at $1.26 a share is not cause for celebration. But when McClatchy stock closed at that level today, it represented a gain of 23.5 percent in the last three trading days.
McClatchy was threatened two weeks ago with delisting on the New York Stock Exchange. The company responded with two moves that appear to have boosted investor confidence:
- It authorized a repurchase of up to $15 million of its regularly traded shares (there is a second class of stock controlled by family members that is not affected.)
- It paid down debt by $22.9 million, further chipping away at the large interest expense that has dragged down earnings for years.