PeoriaIllinoisan doesn’t mince words:
The Reader’s Choice Awards are a joke. A tool. A way to bring in and reward advertisers. It has nothing to do with the readers and there is hardly much choice involved.
He’s got a point. After reading his post, I took a look at the Journal Star Readers’ Choice Award ballot, and out of 56 categories, 38 (68%!) had only one business from which to “choose.” Looks like a sham to me.
Oh, I know I’m not the first to break this news, but if the Journal Star can say they’ve got the “exclusive” on this when PeoriaIllinoisan already reported it on the 15th, then heck, I can say I’ve got an exclusive, too.
The German-based company Bosch has bought out local sprinkler maker L. R. Nelson, previously owned by former Peoria mayor Dave Ransburg.
It is expected Bosch, the multi-faceted, Stuttgart, Germany-based company, will keep the Nelson business intact, including the company’s 250 employees, as well as the Peoria facility, [Ransburg] added.
Of course, if Ransburg said the employees are safe, they’d better start looking for new jobs. He said he wouldn’t be sending any jobs overseas either, right before he sent jobs overseas. So I wouldn’t take his word on anything.
From my mailbox today:
August 27, 2008
Dear Subscriber,
As a subscriber who has chosen to pay for your subscription through our Easy Pay Plus plan, you are among our most valued subscribers and wisest readers. That is why we are writing you today to let you know about an upcoming change in our rates.
Effective September 29, 2008, your new rate will be $19.50 per month. That is an increase of less than four cents per day. While our Easy Pay Plus rate has not changed in over two and a half years, fuel costs have increased dramatically as you well know, as well as newsprint costs. We feel that it is appropriate to help our carriers offset these increased fuel costs and enable us to retain carriers who will provide good service to valued customers like you.
We know that you recognize the value and convenience of paying for your subscription with the most economical rate that we offer. We are equally sure that you recognize the value of the news and information, entertainment and many saving values found in the Journal Star everyday.
Thank you for continuing to be a loyal and valued Journal Star reader.
Sincerely,
Bruce Nielsen
Circulation Manager
Considering they put all their content on the web for free, I would like Mr. Nielsen to explain to me what benefits I’m getting by paying almost $20 a month for the “dead tree version,” as Billy Dennis calls it. Billy gets the same news I get, only he gets it for nothing, and I pay over $200 a year for it. As one of the Journal Star’s “wisest readers,” why shouldn’t I cancel my subscription?
My wife’s letter to the editor was published today in the Journal Star. I agree with her 100%. 🙂
GateHouse Media, the parent company of the Peoria Journal Star and Peoria Times-Observer, saw its stock fall to just 44¢ per share at the close of trading today. Also, according to Compliance Reporter:
GateHouse Media’s corporate family rating and probability of default rating was downgraded last Monday by Moody’s Investors Service, on concerns the Fairport, N.Y.-based publisher is facing possible default on its credit agreement. The corporate family rating was dropped to Caa1 from B2 and the probability of default rating was dropped to Caa2 from B3.
And, of course, Billy Dennis has been outdoing himself in his coverage, even getting an interview with analyst Lauren Rich Fine.
But you won’t hear about this in the local media. No coverage from radio or TV, and certainly nothing in the Journal Star or Times-Observer. I guess mum’s the word on their imminent demise. All analysts agree that GateHouse will need to sell off a lot of the newspapers they’ve bankrupted themselves buying. Who knows what that portends for our newspaper of record here in Peoria. They’re certainly not telling.
Paul Gordon’s business column in the Journal Star today is all about stock analysts’ view Caterpillar.
A consensus estimate of 20 industry analysts who follow Caterpillar, and compiled by Thomson Financial Network, is that the company made a profit of $1.55 a share during the second quarter, which ended June 30.
No mention of the consensus estimate of 4 industry analysts who follow GateHouse Media, and compiled by Thomson Financial Network, that the Journal Star’s parent company made a profit of 1¢ a share during the second quarter, which ended June 30. Nor is there any mention of their estimate for the next quarter: -1¢.
Is the Journal Star under orders not to cover GateHouse Media? Or do they just not find the potential demise of Peoria’s only daily newspaper newsworthy?
Of course, and I’m serious when I say this, nothing would make me happier than for someone to comment on this post telling me that the Journal Star is safe and all this speculation about their demise is an overreaction.
GateHouse Media, Inc., the company that owns the Peoria Journal Star and the Peoria Times-Observer, finally saw their stock rise slightly, closing right at $1 today. Unfortunately, they also saw the NYSE halt floor trading of their stock — the first step toward being de-listed altogether.
NYSE Regulation spokesman Scott Peterson said trading of GateHouse (NYSE: GHS) was put under an “operational trading halt” on Tuesday morning. To return to floor trading, a stock must trade above $1.10 a share for an entire trading day.
GateHouse also announced today that they’re shuttering two Massachusetts weekly newspapers: The Taunton Call and The Avon Messenger. In both cases, GateHouse also owns a daily paper in the same market. And in both cases, GateHouse uses the same boilerplate to explain its decision to mothball the weekly:
…we have continued to analyze the best possible way to provide you with the most comprehensive local news in [Taunton/Avon]. We believe that mission will be accomplished by focusing our energies on our daily publication and through the most dynamic local Web sites possible.
If that’s any indication of their improvement strategy, look out Peoria Times-Observer.
Hat tip: Billy Dennis.
GateHouse Media shares have officially closed at less than $1. It’s looking more and more like this analyst’s predictions from early June will be coming true:
The next newspaper company to get into real trouble is likely to be Gatehouse Media (GHS). The firm is in bad enough shape that it could be the next Journal Register. JRC, as it was known, hit hard times due to large debt and falling operating income. It was delisted from the NYSE. […]
Watch for GHS to be broken up before the end of the year or to enter Chapter 11.
Still no coverage from the Journal Star or any other GateHouse papers. I guess they don’t feel it’s newsworthy. I’ve even contacted business editor Paul Gordon and publisher Ken Mauser, but they haven’t returned requests for comment.
UPDATE: I thought this was a well-deserved slam against companies like GateHouse Media:
The newspaper industry’s strategy of shrinking newsroom and newshole seems not to be helping their shrunken stock prices.
You can say that again.
Dipping as low as 87¢ in early trading, GateHouse stock rebounded to $1.06 at one point, and is $1.02 as of 10:44 a.m. If it falls below $1, it may be delisted from the NYSE.
Still no coverage of GateHouse’s implosion by the Journal Star.
GateHouse Media, Inc., the company that owns the Peoria Journal Star, is in a heap of trouble, reports Editor & Publisher. The newspaper industry journal reports that Morningstar, a provider of independent investment research, has “reduced its fair value estimate for GateHouse shares to zero from $3 in its report in May.” Why?
“Because of the company’s exposure to a challenging advertising environment, a debt-heavy balance sheet, and declining cash flows, we think the equity shares could be worthless,” stock analyst Tom Corbett wrote. […]
Morningstar also said GateHouse is close to violating one or more of the covenants on its huge deb. “Should that happen, its debt could become due immediately, resulting in a possible liquidation scenario,” Corbett wrote.
Shares of GateHouse had been up to $19 per share in the last year, according to E&P. Today, it dropped below a dollar briefly and is at $1.02 as of about 3 p.m. This does not bode well for Peoria’s only daily newspaper.
UPDATE: The Boston Herald has a story on GateHouse’s woes. They say that the analyst’s report cited above caused the stock to drop to 98 cents at one point. GateHouse stock closed at $1.04 Tuesday.