A.H. Belo shares up 30% as company moves to sell ProjoFebruary 24th, 2014 at 12:09 pm by Ted Nesi under Nesi's Notes, On the Main Site
Providence Journal owner A.H. Belo’s stock is on a tear just as the company prepares to sell the local daily.
Shares of Dallas-based A.H. Belo have jumped more than 30% in New York Stock Exchange trading since closing at $8.05 on Feb. 11, a day before the company announced a $16 million annual profit for 2013 and gave an update on its efforts to sell The Journal. The stock was at $10.49 at 11:56 a.m. Monday.
The rising share price has triggered at least 10 stock transactions by A.H. Belo insiders, SEC filings show.
It’s a far cry from the grim days of early 2009, when A.H. Belo stock tanked amid the post-crisis market crash and deep uncertainty in the newspaper industry. The company’s shares fell as low as 68 cents on March 10, 2009, meaning an investor who bought the stock that day and held it would have a 1,442% gain today.
A.H. Belo Chief Financial Officer Alison Engel told investors Feb. 12 that the company would send out sale books to potential Journal buyers this month, and that she expected the process “to wrap up, I would assume, sometime in April or May.” Engel didn’t respond to an email requesting further comment; Journal executive editor Karen Bordeleau declined to comment.
A.H. Belo already sold its third major newspaper – The Press-Enterprise of Riverside, Calif. – last year, so selling The Journal would allow the company to narrow its business focus to its flagship Dallas Morning News and associated businesses in its home base of Texas.