How’s the Citadel wager?
Don @ IdahoRadioNews | June 23, 2009In March, we noted that Citadel Broadcasting’s stock scraped the bottom of the barrel — costing just $0.02. It popped up to about 4 cents a share later that week — which led me to ask if you’d take the bet and put $1,000 into the stock – taking home about 20,000 shares.
If you’d made that bet – you’d be… in the exact same position. The stock ended the day at $0.043 — just more than four cents per share. The stock has not traded higher than 13 cents.
Related: Journal Communications is currently trading at $1.10 – up quite a bit from the March low of $0.39.
I would have taken the bet, but I think I would have gone a step further to buy as much of the company as possible to gain controlling interest. Then fire top management and the board and put broadcasters in their place.
The biggest challenge Citadel has is making its debt payments by the end of the year or early 2010. Not many analysts think they will be able to make it. We’ll see…