Cumulus stock worth less than a candy bar !!!
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Thread: Cumulus stock worth less than a candy bar !!!

  1. #1
    gregg75's Avatar
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    Cumulus stock worth less than a candy bar !!!

    Are they about to go under? Their stock was worth 99 cents a share yesterday. Did you know that on 10-13-2016 they did a REVERSE stock split? In that split investors got one share out of 8 and they got the other 7! So basically they are running the company at shareholders expense. I would have been better to invest my money in "anything" (toilet paper, gym clips, pencils) other than Cumulus. They suck!

    https://globenewswire.com/news-relea...ock-Split.html
    Last edited by gregg75; 02-02-2017 at 10:48 AM.
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  2. #2

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    I wondered why they didn't do a 1 for 100 reverse split when they did. The last reverse split still left the stock with a dangerously low price to avoid delisting.
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  3. #3
    Quote Originally Posted by gregg75 View Post
    Are they about to go under? Their stock was worth 99 cents a share yesterday. Did you know that on 10-13-2016 they did a REVERSE stock split? In that split investors got one share out of 8 and they got the other 7! So basically they are running the company at shareholders expense. I would have been better to invest my money in "anything" (toilet paper, gym clips, pencils) other than Cumulus. They suck!

    https://globenewswire.com/news-relea...ock-Split.html
    The reverse split is pretty well-known. So yeah, the unadjusted price would be about a quarter. What is hard to get used to is that the market capitalization of the whole shebang is now only $29 million. Meanwhile Entercom, which was far more careful with acquistions today announce a merger with CBS Radio. Good job by David Field and company.

    As for Cumulus "going under". I doubt stations are going off the air but some kind of drastic reorganization and/or sale of assets wouldn't surprise me.

  4. #4
    gregg75's Avatar
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    Well they are not doing something right. I think even I could run the company and get their stock above 99 cents a share! If that's the best they and their board of directors can do, then they need to give it up and open some Dollar Generals.
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  5. #5
    The reason the stock price is so low has to do with their $2 billion is debt. Lew Dickey created the debt and didn't have a plan for it. That's why the board of directors replaced him. The current CEO has made addressing the debt their main target. But it takes time. They have an offer out to buy down some of that debt, and there are deals in the works to sell off two big parcels of land that will net about $250 million. If those deals get done, plus they improve revenues, they can wipe out a big chunk of the debt. Not saying that will make the stock worth buying, but it will remove a major reason why it's where it is now.

  6. #6
    They could start to "improve revenue" right here in Atlanta. 106.7 has been under performing. Last month it got beat by a translator (6+). When there is a station on the same tower but at a lower power (104.7) out billing 106.7 around 2 to 1 someone should be fired.

  7. #7
    Also, Cumulus has a number of groups in 200+ radio markets, such as Columbia/Jefferson City MO, Bloomington/Normal IL, Columbus/Starkville MS, Abilene TX, Wichita Falls TX just to name a few that would be prime candidates to spin-off, unless they're generating an out-sized portion of revenues compared to market size. Would it be a stretch to suggest their holding in the 200+ markets might raise another $100 million or more?

  8. #8
    Quote Originally Posted by secondchoice View Post
    When there is a station on the same tower but at a lower power (104.7) out billing 106.7 around 2 to 1 someone should be fired.
    They did. They already replaced the market manager a while ago. Obviously there're more to the story.

    Quote Originally Posted by joebtsflk1 View Post
    Would it be a stretch to suggest their holding in the 200+ markets might raise another $100 million or more?
    Big stretch. The biggest problem is finding buyers.

  9. #9
    A few of these clusters might be a good fit for Saga, such as Columbia/Jeff City, the Texas clusters, maybe one of the Illinois clusters.

  10. #10
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    Quote Originally Posted by gregg75 View Post
    Are they about to go under? Their stock was worth 99 cents a share yesterday. Did you know that on 10-13-2016 they did a REVERSE stock split? In that split investors got one share out of 8 and they got the other 7! So basically they are running the company at shareholders expense. I would have been better to invest my money in "anything" (toilet paper, gym clips, pencils) other than Cumulus. They suck!
    That's not how a reverse split works. "They" didn't get the other 7. If there were 7 million shares before, there are 1 million now. The idea was to have each new share worth 7 times the value of one previous share.

    Share price does not determine the survivability of a station group. The balance sheet and P&L decide that.
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