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April 22, 2008

Entercom Could Cut Dividend, Shares Fall

A Bloomberg report indicating that Entercom may be close to slashing its dividend has shares tumbling in midday trading.

ETM shares hit a new all-time low of $8.69 earlier this morning and currently trade at $8.71, down 42 cents.

The story also reveals that major institutional investors purchased ETM shares late last year, apparently believing they were adding to their holdings at bargain levels. But selling pressure has continued unabated since then.

If the dividend is cut, it could bring a temporary relief rally, but long term, the lower yield might make shares less attractive.

Posted by Brian Maloney at 11:51 AM | Comments (5) | Track

Comments

OT, but Ch. 7's Randi Goldklank took a Kennedyesque nutty at Logan on Sunday and tried to 'Moe Green' the arresting officer:

http://www.bostonherald.com/news/regional/general/view.bg?articleid=1088878&srvc=home&position=0

( PS Brian, it would be nice if you allowed link URLs )

Posted by: Cap'n Spackle at April 22, 2008 01:30 PM

Gee...where's Johnny Angel now?? Yesterday he said ETM was a good buy! What a genius.

Posted by: bob at April 22, 2008 02:49 PM

"The story also reveals that major institutional investors purchased ETM shares late last year, apparently believing they were adding to their holdings at bargain levels."

-True, and there are still more institutional investors who recommend "buy" or "hold" ETM than sell, but you don't read that here. The price is a commentary on the company as a pure radio play at a time when the industry is getting beat down. It may yet turn out to be a decent value if you can hold it in the long run, but at present it is hard to argue with Brian's preference for Cisco.

Posted by: Fair and Balanced at April 22, 2008 03:06 PM

If they can get that hottie from Ch 7 on the radio and she told every male caller, 'You think I'm cute and I think you're cute, drive me home,' their ratings and stock price would soar. Hello dividends.

Posted by: Chris at April 22, 2008 03:48 PM

Apparently, Barclay's and JP Morgan agree with me--it is a buy.

Sorry you bought at the high, pal--big mistake.

Posted by: J Angel at April 22, 2008 06:49 PM