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Cumulus Stock Price

W

wavo

Frequent Participant
Cumulus has hit an all time low today. As of 30 minutes before the closing bell, Cumulus is trading at $1.15/share with heavy volume three times normal. That is a drop of 14.5% from yesterday's close.
That price translates to the before reverse split price of a little over $0.14/share. 14 pennies!!
Anyone have any inside info on the earnings call on 11-9? Are sentiments generally negative regarding the chance Cumulus will hold on and return to profitability? Any theories, gossip, innuendo?
 
wavo said:
Cumulus has hit an all time low today. As of 30 minutes before the closing bell, Cumulus is trading at $1.15/share with heavy volume three times normal. That is a drop of 14.5% from yesterday's close.
That price translates to the before reverse split price of a little over $0.14/share. 14 pennies!!
Anyone have any inside info on the earnings call on 11-9? Are sentiments generally negative regarding the chance Cumulus will hold on and return to profitability? Any theories, gossip, innuendo?
Click to expand...

Stock closed at $1.02 which is 24% down for the DAY! Today's low was $0.95...95 cents! Back to the same delisting problem they had before the reverse split. Incredible!!
I'm curious...will tomorrow be a big buyers day for Cumulus? It is down over 50% since the split and the market cap is equal to about the cost of 1 major market FM radio station. Is there bad news around the bend or are some folks going to make a pile of money in the coming days?
 
microbob said:
The entire company is worth just over 30 million. Wow!
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Actual close today was $1.05, down almost 22% with 4 times normal volume. There was a lot of selling today!!
Marketwatch shows their market capitalization at $60 million which is about what one of their NYC stations would sell for. That's a few million less than Entercom paid for 15 stations, most in major markets.

CBS wrote off almost a half billion dollars in lost value last year and has vowed to rid itself of pesky radio (and all it's cash flow.) There are many other investors/companies who are running away from radio as fast as they can. We all know the pie slices have gotten smaller thanks to internet competition but is radio never going to be a growth business again? Are all the ideas exhausted...has everything already been tried...is radio mature, getting older, and heading for obscurity?
 
Being down 18% in just 21 minutes without some disastrous news isn't something that should happen. Someone dumped CMLS stock in a hurry today. It's possible that some mutual fund company (Vanguard, Janus, whoever) decided to cut their losses today and sold all at once. Or the Dickeys sold a fraction of their holdings.

I've thought about some CMLS shares. At this point, in the 1-3 year timeline either they recover and the stock shoots up, or they go bankrupt.
 
PTBoardOp94 said:
I've thought about some CMLS shares. At this point, in the 1-3 year timeline either they recover and the stock shoots up, or they go bankrupt.
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The only way they go bankrupt is if the investment company that holds the majority of its stock lets it collapse. They don't seem ready to do that yet. They're still pumping money into their hand-picked CEO. All that could change, or she could signal a new direction in the 11/9 call. But right now, they seem unaffected by the stock price.
 
PTBoardOp94 said:
It's possible that some mutual fund company (Vanguard, Janus, whoever) decided to cut their losses today and sold all at once.
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The top 8 mutual fund holdings represent only 0.5% of the total Cumulus stock float. The volume was about four times normal, but still represented only 0.026% of total shares being traded. In other words, a lot of flurry caused by a very few shares changing hands.
 
DavidEduardo said:


The top 8 mutual fund holdings represent only 0.5% of the total Cumulus stock float. The volume was about four times normal, but still represented only 0.026% of total shares being traded. In other words, a lot of flurry caused by a very few shares changing hands.
Click to expand...

Heavy volume is a good indication of insider activity or other unusual activity.
Today did not produce the rally I expected - stock was up only 5%. For any other stock that would be a great one day return but following a -21% day, not so much so.
A drop of 21% (it was down over 25% at points) on heavy volume IS a reason for questions and if you're a stockholder, a reason for concern.
It will be interesting to watch the coming days to see if a buying spree develops.
 
TheBigA said:
There are lots of other factors besides price that affect buying stock.
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Of course there are many factors affecting stock prices and market interest. That is my question Big A...what has changed since the reverse split that has caused Cumulus stock price to drop like a rock. Can anyone identify ANY change that would make investors nervous or inclined to take profits/loss and move on?
 
wavo said:
Can anyone identify ANY change that would make investors nervous or inclined to take profits/loss and move on?
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The end of the year. Some brokers recommend selling a combination of losers with some big gainers before the end of the year to offset the tax liability.

But sure, there may be some bad news coming next week. On many fronts, including the election. No way to know for sure until it happens.
 
PTBoardOp94 said:
I've thought about some CMLS shares. At this point, in the 1-3 year timeline either they recover and the stock shoots up, or they go bankrupt.
Click to expand...

And look! Turns out it only took just over 1 year for Mary Berner and her brain trust to drive Cumulus straight to bankruptcy.

Anyone who thinks Cumulus survives without massive job cuts and/or selling off stations is flat-out wrong.
 
mrkadison said:
And look! Turns out it only took just over 1 year for Mary Berner and her brain trust to drive Cumulus straight to bankruptcy.

Anyone who thinks Cumulus survives without massive job cuts and/or selling off stations is flat-out wrong.
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Point of fact: Mary Berner has been CEO for 2-1/2 years. If you just do a simple search on the internet, you'll find all the documents on the Chap 11. The major lenders have approved it. The company likely won't be selling any stations or laying off staff. In fact, during the bankruptcy, they bought a station in Chicago, hired several new staffers, and launched some new shows. So you appear to be the one who's "flat-out wrong."
 
mrkadison said:
And look! Turns out it only took just over 1 year for Mary Berner and her brain trust to drive Cumulus straight to bankruptcy.
.
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Berner was brought in to steer the company through reorganization with the very real prospect that it would be necessary to declare Chapter 11 bankruptcy.

The company is poised to exit bankruptcy in late Spring or Summer of this year, with no major sell-offs of assets unless any grandfathered overlaps or excesses requires them as, in effect, the ownership changes as the former shareholders loose most / all their equity.
 
TheBigA said:
Point of fact: Mary Berner has been CEO for 2-1/2 years. If you just do a simple search on the internet, you'll find all the documents on the Chap 11. The major lenders have approved it. The company likely won't be selling any stations or laying off staff. In fact, during the bankruptcy, they bought a station in Chicago, hired several new staffers, and launched some new shows. So you appear to be the one who's "flat-out wrong."
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Berner - Yes BigA, I realize how long Ms. Berner has been CEO. My comment about it taking "just over 1 year" was in reference into the previous post dated Nov. 3, 2016.

Internet searches - Thanks, I understand how Google works. ;-)

Bankruptcy - At the time of the aforementioned previous post, Cumulus shares traded on the Nasdaq at $1.13 a share. This was after the 8-for-1 REVERSE split (always an encouraging sign that Wall Street likes to see). Today Cumulus shares go for 7 cents......on the pink sheets.

How Finance Works - This company has a market cap of $2 million, and its debt is north of $2 billion. You don't think staff cuts or station sales are coming?? Maybe you should do a simple search on the internet to see how Mary Berner handled Reader's Digest's financial troubles......right up until the board of directors showed her the door and replaced her.

To be clear, I've never owned shares of Cumulus Media and I've never crossed paths with Ms. Berner. But I have no respect for radio execs who pay lip service to "great programming" and "serving our listeners" and then run their stations with no regard to either.
 
mrkadison said:
You don't think staff cuts or station sales are coming?? Maybe you should do a simple search on the internet to see how Mary Berner handled Reader's Digest's financial troubles......right up until the board of directors showed her the door and replaced her.
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I have no reason to believe that one situation has anything to do with the other.
 
TheBigA said:
I have no reason to believe that one situation has anything to do with the other.
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Other than Mary Berner being the CEO running both media content companies, you may be right BigA.

And as Journey taught us all......don't stop believin'.
 
mrkadison said:
B
How Finance Works - This company has a market cap of $2 million, and its debt is north of $2 billion. You don't think staff cuts or station sales are coming?? Maybe you should do a simple search on the internet to see how Mary Berner handled Reader's Digest's financial troubles......right up until the board of directors showed her the door and replaced her..
Click to expand...

Market cap has no bearing on a Chapter 11 situation. The shareholders have the expectation of getting nothing but worthless digital "paper" as they have about the lowest priority in the proceedings. Those buying the shares are pricing them at what they think they will be worth if there is any residual equity to be distributed; they are speculating.

The new stakeholders will be the lenders and creditors who take equity in the reorganized company as part of the settlement of debts.

Berner was taken in to Reader's Digest to reorganize. She took the only possible avenue out, which was Chapter 11. Some of the shareholders were in disagreement as they could not understand how print and direct marketing, the main products of RD, had declined. In the end, I think analysts agreed with what Berner was doing and lament that she was not allowed to see it through as it's the belief in many that she was a better steward for the assets than the management that followed her.
 
DavidEduardo said:
Berner was taken in to Reader's Digest to reorganize. She took the only possible avenue out, which was Chapter 11.
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The ONLY possible avenue out....you sure about that, Mr. Gleason?

I took BigA's advice and did a simple search on the internet, which led to this article about how Ms. Berner "charted a course for growth" when she took the reins at Reader's Digest a full 4 years before she was shown the door.
https://www.mediapost.com/publications/article/149280/ceo-berner-exits-readers-digest.html
 
Safe to assume we're done here?

Y'know, when trading opened on Wall Street this morning Cumulus Media's stock opened at five cents a share. Five cents!!
And you know what's really incredible? It actually fell another 10%.
https://finance.yahoo.com/quote/CMLSQ?p=CMLSQ

I'm sure it won't be Mary Berner or Mike McVay or anyone else in the Cumulus brain trust, but whoever's the last one out the door please turn off the lights, m'kay?
 
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