More trouble in CMLS land

Nasdaq has several rules that a stock must follow in order to remain listed. One of the most important is a minimum stock price of $1 per share. The Cumulus stock had been down around $.30 a share since the Dickey family was booted out and replaced by the woman who rode Reader’s Digest through bankruptcy.

Facing delisting, CMLS shareholders voted for an 8:1 reverse stock split to raise the price up to $2.40 a share by cancelling 7/8 of the existing shares. But in about a week since the reverse split, the stock is back down to $1.05 a share, meaning the stockholder value for the entire company is down to $37 million. When you consider that there are pending deals to sell the WMAL and KABC tower sites for $200 million in cash – that seems odd, until you remember that the company has $2.4 billion in long term debt. The stockholders are just a pimple annoying the real owners – the banks.

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7 Responses to More trouble in CMLS land

  1. To keep Hillary at bay, should we be so unlucky that she’s elected, let’s make her process her executive orders through a Cumulus stream player. That should tie her up until it’s time for another presidential election.

  2. Fred Stiening says:

    This is a bit “inside”, but they might want to change the name to Cumeless

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