New Intraday Lows For Entercom
by Brian Maloney, March 14th, 2008 at 12:02pm
WRKO / WEEI owner Entercom’s (NYSE:ETM) shares hit a new 52-week low today, briefly touching $9.85 before rebounding back above $10.
While ETM shares haven’t yet closed below the important support level of $10, it seems only a matter of time before that occurs. Entercom shares once traded above $66 a share.
I’m going to go out on a real limb and suggest that stocks may rebound sharply before the close of trading today, however. Feel free to laugh your head off in four hours if we ultimately crash and burn instead.
Nonetheless, the long term picture for Entercom still looks bleak. Even a minor recession couldn’t have come at a worse time for radio operators, which were already seeing advertising snatched away by the Internet and other emerging media. Political advertising could help a bit (or even a lot), but those spots are sold at the lowest available rates by design.
Entry Filed under: WRKO
3 Comments
1. noshame | March 15th, 2008 at 10:45 am
There is much happening in this country by
design. Why is it that as a nation we have
become mute to it all. By the by, this
crosses party lines.
2. nhman | March 16th, 2008 at 10:56 am
I am kinda suprised that nobody is talking about the stunt WEEI pulled yesterday.
They put two regular annoying callers on the air as hosts of their own show. These guys were HORRIBLE! They actually had their family (including one of the host’s very elderly Godmother) call in and tell them how great they were.
It was like sports radio’s version of Wayne’s World.
Is this how Entercom is trying to save money these days? Public Access sports radio?
If it is, I’d rather replays and infomercials…
3. BigBish | March 17th, 2008 at 3:46 pm
This dog’s fleas are burrowing in for the long haul…..
NEW YORK (AP) — Standard & Poor’s Ratings Services said Monday it is reviewing Entercom Communications Corp.’s ratings for a possible downgrade because of concerns about its debt levels.
S&P said the company has a narrow margin of compliance with the terms of its lending agreements after it borrowed heavily to finance acquisitions at a time when earnings were declining. Entercom bought 15 radio stations from CBS Corp. for $262 million last year.
Companies have to meet certain financial ratios to stay in compliance with lending terms. If they violate those terms, the lender can declare a default situation and demand more collateral or immediate repayment.
S&P put the “BB-” rating on Entercom on a watch list “with negative implications.”
Entercom shares fell 51 cents, or 5 percent, to $9.67 in afternoon trading.