Betting Against the NYT [Stephen Spruiell]
Wall Street is giving the New York Times a vote of no confidence:
Investors are increasing their bets that the slumping New York Times stock, which has plunged 25 percent in the past year, won't bounce back anytime soon.
Short sellers, who profit when a stock's price falls, increased their positions to 14.6 million shares in April. Short sellers held 14 million shares in March and just 6.4 million shares last April.
Yesterday, the stock closed at $24.24, down 6 cents or 0.25 percent. The stock has not been this low since October 1998.
The blossoming short selling in Times stock is a key sign that investors feel the newspaper titan and its boss, Arthur "Pinch" Sulzberger, Jr., have done little to quell stockholder unrest that cropped up at its mid-April board meeting.
"Pinch" Sulzberger can't
do anything to quell stockholder unrest: He's the problem! He's presided over one newsroom catastrophe after another. The editorial board has abandoned cogent debate for screeching partisanship. His solution for additional revenue? Charge people to read Maureen Dowd and Paul Krugman. Yet large shareholders like Morgan Stanley can do nothing, because Sulzberger is protected by a dual stock structure that gives the Sulzberger family control of the board. Is it any wonder that Morgan Stanley is pushing to change this system and make the NYT more accountable to its investors?
05/05 01:08 PMShare