Radio Broadcasters Near Eleventh Hour
by Brian Maloney, March 2nd, 2009 at 05:38pm
As several major broadcast firms near their final days, it’s interesting to note how each chooses to rearrange its respective deck chairs.
If you’ll forgive a Star Trek analogy, think of the captain of a doomed ship who yells “fire at will!” in desperation. Has that ever worked?
There’s a general industry consensus that at least several of these station operators will collapse this year. WPRO / WABC owner Citadel - ABC Radio certainly appears to top the list.
Despite a recently-changed New York Stock Exchange policy that will allow most penny stocks to continue trading there, Citadel (NYSE:CDL) has been shown the door anyway. According to MediaPost, it’s an “ominous” sign, since the NYSE normally bends over backwards to accommodate companies with even a prayer of turning around. But the company’s declining revenues and heavy debt load tell the story.
Ahead of Friday’s removal from trading, CDL shares closed today at nine cents. (Citadel honcho Farid Suleman is shown above)
So what is Citadel doing as it awaits its impending demise? Beyond firing a few managers, not a whole lot in recent weeks. Is it resigned to its fate?
Meanwhile, our old friends at WRKO - WEEI owner Entercom (NYSE:ETM) have revealed their cards and it turns out they were bluffing all along.
According to GuruFocus.com, Pops and David Field alike have been at it again, using their own money in another futile attempt to prop up its share price. What about the shares Pops bought at seven, eight and nine dollars last year?
Today, it closed at 94 cents, putting an end to its recent (clearly ownership-fueled) “rally” from a half-buck up to the circa-$1.30 range.
Take a look at the latest purchase data:
Recent Trades of Entercom Communications Corp. by CEO:
* Buy: President and CEO, 10% Owner David J Field bought 21,314 shares of ETM stock on 02/27/2009 at the average price of $1.14; the price of the stock has decreased by 5.26% since.
* Buy: President and CEO, 10% Owner David J Field bought 23,401 more shares of ETM stock on 02/24/2009 at the average price of $1.13; the price of the stock has decreased by 4.42% since.
* Buy: President and CEO, Director, 10% Owner David J Field bought 22,743 more shares of ETM stock on 02/19/2009 at the average price of $1.19; the price of the stock has decreased by 9.24% since.
* Buy: President and CEO, Director, 10% Owner David J Field bought 270 more shares of ETM stock on 02/02/2009 at the average price of $1.18; the price of the stock has decreased by 8.47% since.
* Buy: President and CEO, Director, 10% Owner David J Field bought 3,002 more shares of ETM stock on 01/30/2009 at the average price of $1.19; the price of the stock has decreased by 9.24% since.
Recent Trades of Entercom Communications Corp. by Directors and Officers:
* Buy: Chairman, 10% Owner Joseph M Field bought 53,286 shares of ETM stock on 02/27/2009 at the average price of $1.14; the price of the stock has decreased by 5.26% since.
* Buy: Chairman, 10% Owner Joseph M Field bought 58,499 more shares of ETM stock on 02/24/2009 at the average price of $1.13; the price of the stock has decreased by 4.42% since.
* Buy: Chairman, Director, 10% Owner Joseph M Field bought 56,857 more shares of ETM stock on 02/19/2009 at the average price of $1.19; the price of the stock has decreased by 9.24% since.
* Buy: Chairman, Director, 10% Owner Joseph M Field bought 675 more shares of ETM stock on 02/02/2009 at the average price of $1.18; the price of the stock has decreased by 8.47% since.
* Buy: Chairman, Director, 10% Owner Joseph M Field bought 7,504 more shares of ETM stock on 01/30/2009 at the average price of $1.19; the price of the stock has decreased by 9.24% since.
Why aren’t the other board members investing their own funds in ETM shares? And at what point do the Fields simply run out of money, no longer able to prop up the share price at any level?
Entry Filed under: Uncategorized
9 Comments Add your own
1. bob | March 2nd, 2009 at 11:25 pm
Watching Fields is like watching Obama.
Keep spending and hoping for a different result.
More proof: Liberalism is a mental disorder.
He stinks up the joint, fires a lot of people to cut costs, spends his own money in an attempt to prop up the stock…but instead of new ideas and new innovative Leadership for Entercom…he stays on as CEO and continues to ruin the company. Amazing!
Conservatives care about the long-term health of the golden goose. Liberals just want to spend the golden eggs until the goose is dead.
2. Circlet Soft | March 3rd, 2009 at 8:47 am
Harrumph.
3. ChrisNH | March 3rd, 2009 at 4:29 pm
Amen Bob. This entire administration is an utter DISASTER: Obama and everyone around him. Totally clueless, totally disingenuous, totally inept. In barely a month, this rodeo clown and and all the limp-wristed poodles surrounding him have a deer-in-the-headlights look that is so telling. There are NO smiles coming from any of them, because they know that they are ruining the country. There’s a fundamental lack of confidence in EVERYTHING this jerk is doing.
4. the real Barbara | March 3rd, 2009 at 4:41 pm
It used to be that every time obama opened his mouth the stock market would tank, now, he doesn’t even have to open his mouth, it just tanks automatically. We are sooooo screwed. Oh yeah, just for the record, the dow IS down again today.
5. ChrisNH | March 3rd, 2009 at 10:32 pm
The Wizard of Smart told people to ‘pay no attention’ to the market and to ‘go out and buy stocks’ now. Yes, why not plasmas and cruise vacations, too, with money we don’t have, just so you can say ‘Your Plan is Working.’ I’ll be damned if I’ll help HIM look good. My money stays in my pocket and comes out for essentials only. Leave it to Him: He’ll probably crow about sales increases in milk and bread and say his stimulus plan is working. A dreadful, dreadful president that I am completely embarrassed to say is mine. I’m MUCH prouder of my Irish citizenship.
6. Cap'n Spackle | March 4th, 2009 at 2:21 am
Tuesday evening Howie & the gang blew it with the timing of some sound effect and he made a reference to “Happy”, saying that he’d have gotten it right, but “Entercom happens” and “Happy” has “moved on to a better place”.
For those not keeping score, he’s now McPhee’s producer on 96.9 where Howie’d rather be. I wonder if Howie still wears a 96.9 button while on the air at RKO?
7. the real Barbara | March 4th, 2009 at 8:34 am
Cap’n I heard that bit that Howie did, absolutely priceless and he makes no bones about where he’d rather be! I love it when he says “entercom happens” a slap in the face to julie and jason. Too bad entercom wouldn’t happen to the felon!
8. ‘Liberal’ ABC&hellip | March 27th, 2009 at 2:11 pm
[...] well read on with more from Radio Equalizer: Booted off of the New York Stock Exchange after it failed to make a convincing case for its future viability, Citadel will cease trading there tomorrow, moving to the illiquid and sometimes shady world of the [...]
9. midphase | May 22nd, 2009 at 10:48 pm
All of these station owners are toast. The only way they can survive is to buy advertising from each other!!
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