Audacy Stock.... a new low!

[MarkW]

I bought some shares of AMD this morning.

Will be a long-term hold for me, I anticipate.

Some small and mid cap tech stocks (and a few prior large caps) are off 80 or 90 percent from their 2021 highs. Digital streaming has taken an enormous hit in share price relative to (overheated) highs. Look at ROKU, for instance.

 

[Kelly A]

By the way, SXM has about 3.9 billion (!!!) shares of common stock outstanding. Issuing all those shares was a much better strategy than levering the balance sheet with a ton of debt.

And that's the problem; besides being considered legacy tech to analysis's, SXM has a ridiculous count of common shares. They did it for exactly the reason you mentioned: Bank's and VC aren't interested in that sort of business anymore, so where else do you drum up capital? Downside is; you lose control of your fate. Some guy like Mario Gabelli can swoop in, buy a ton of shares, place new faces on the board, and before too long you find yourself facing a takeover, or worse.

 

[MarkW]

Regarding hostile takeover risk: it depends who holds the shares and how concentrated (or not) the ownership percentages are.

I have not looked at a largest shareholder list for SXM in a very long time.

SXM's cost of capital clearly would've been much higher had they gone the highly levered route for the reasons you stated.

 

[TheBigA]

I have not looked at a largest shareholder list for SXM in a very long time.

The largest shareholder (81%) is Liberty Media and John Malone.

Meanwhile at Audacy, the largest single shareholder is David's dad Joseph, with 18%. I would imagine old dad has a lot to say about what happens next at the company he founded.

 

[PTBoardOp94]

For as simple sounding as you make it, the Audacy Board isn't in a voting position to get rid of David, because the Fields' own too many of the voting shares:

You'll note my careful phrasing, quoting myself above:
If David Field can't do that [restore profitability] then he needs to resign as CEO.

 

[Kelly A]

You'll note my careful phrasing, quoting myself above:
If David Field can't do that [restore profitability] then he needs to resign as CEO.

He won't. It's essentially a family business.

 

[Deleted User]

41 cents a share at the closing today !

 

[TheBigA]

Some of you may have forgotten that David Field's latest contract with Audacy has incentives in it intended to boost the stock price:

New Employment Deal Incentivizes David Field To Boost Audacy’s Sagging Stock Price.

Audacy President and CEO David Field will begin the New Year with a new three-year employment contract that pays him an annual base salary of $1.35 million. Field could earn

www.insideradio.com

If Audacy’s stock price grows 240% above its Dec. 14, 2021 closing price of $2.50 per share to $6, Field gets 250,000 of the one million RSUs. A 360% bump to $9 per share is worth another 250,000 RSUs. And should shares of “AUD” trade for $12 (a 480% increase), that’s good for another 250,000 RSUs.

They thought the stock price needed help when it was $2.50 a share. Imagine how they feel now.

 

[CTListener]

Some of you may have forgotten that David Field's latest contract with Audacy has incentives in it intended to boost the stock price:

New Employment Deal Incentivizes David Field To Boost Audacy’s Sagging Stock Price.

Audacy President and CEO David Field will begin the New Year with a new three-year employment contract that pays him an annual base salary of $1.35 million. Field could earn

www.insideradio.com

They thought the stock price needed help when it was $2.50 a share. Imagine how they feel now.

"Aw, come on, Dad, I tried. Can't I get 100,000 RSUs, pretty please???"

 

[tbolt909]

Some of you may have forgotten that David Field's latest contract with Audacy has incentives in it intended to boost the stock price:

New Employment Deal Incentivizes David Field To Boost Audacy’s Sagging Stock Price.

Audacy President and CEO David Field will begin the New Year with a new three-year employment contract that pays him an annual base salary of $1.35 million. Field could earn

www.insideradio.com

They thought the stock price needed help when it was $2.50 a share. Imagine how they feel now.

Poor David gets 1.3 million a year now no matter what happens. If he can't get investors excited and increase the stock price, he doesn't get his bonuses. Meanwhile, he'll just RIF as many employees as possible. Even the buzzards won't touch the Entercom/Audacy carcass...

 

[TheBigA]

A new story has emerged in the Audacy stock situation. Apparently Audacy is shopping around one of its podcast companies:

Report: Audacy Exploring Sale Of Podcast Studio Cadence13; Stock Pops On News.

Audacy has been among the radio broadcasters most aggressively pushing into podcasting. But facing financial pressure, the company is reportedly exploring a potential sale of its biggest podcast asset. Audacy

www.insideradio.com

A few years ago, Audacy wanted to get into the podcast business. Instead of building their own platform from within, they chose to buy several established podcast companies. Now they're looking to sell one. The estimated price of $100 million won't solve their debt situation. But it may help consolidate podcast operations, which some say is causing the lack of confidence in Audacy management.

 

[MarkW]

This sounds like a play to bolster liquidity to me. I'd put the surprising announcement yesterday of the deal in Las Vegas to swap KXTE to Beasley for KDWN in the same boat.

Is Cadence13 actually worth $100 million (i.e. is one or more parties willing to pay that)? I'm skeptical.

 

[TheBigA]

Third quarter results were announced today, prompting Audacy stock to drop further:

Audacy May Have Radio’s Most Closely Dissected Third Quarter Earnings Report.

Wall Street has not shown much love to radio stocks in years, but 2022 has been particularly challenging for Audacy shareholders. Not only has the stock price lost about 90%

www.insideradio.com

Stock price has been under a dollar since July, and is now at 30 cents.

 

[Kelly A]

Third quarter results were announced today, prompting Audacy stock to drop further:

Stock price has been under a dollar since July, and is now at 30 cents.

Here's the bottom line statement:
"We have concerns on Audacy equity viability in a recession,” And it's a valid concern. Pure-play anything is a tenuous proposition.

 

[Harvey_Dogg]

I ran from the stock market during the January 6 riot. I saw trouble ahead. Glad I did now. The middle class are felling the burn as many have lost a quarter of their wealth or more.

It's not just one company's stock.

There's some stock in the war machine that's doing well.

 

[tbolt909]

Third quarter results were announced today, prompting Audacy stock to drop further:

Audacy May Have Radio’s Most Closely Dissected Third Quarter Earnings Report.

Wall Street has not shown much love to radio stocks in years, but 2022 has been particularly challenging for Audacy shareholders. Not only has the stock price lost about 90%

www.insideradio.com

Stock price has been under a dollar since July, and is now at 30 cents.

Third quarter results were announced today, prompting Audacy stock to drop further:

Audacy May Have Radio’s Most Closely Dissected Third Quarter Earnings Report.

Wall Street has not shown much love to radio stocks in years, but 2022 has been particularly challenging for Audacy shareholders. Not only has the stock price lost about 90%

www.insideradio.com

Stock price has been under a dollar since July, and is now at 30 cents.

Anyone buying at 30 cents a share? Sounds like David Field may be taking a one way trip to Paraguay any day now. Hope that Golden Parachute opens...

 

[Deleted User]

it hit a low of 27 cents when the market opened today, rebounding to 30 cents a share

Why the NYSE does not enforce the de-listing letter is beyond me, that stock ain't ever coming back

 

[TheBigA]

Why the NYSE does not enforce the de-listing letter is beyond me, that stock ain't ever coming back

Apparently a lot of factors:

https://finance.zacks.com/new-york-stock-exchange-listing-delisting-requirements-7504.html

 

[Mikey Radio]

Wow:

 

[PTBoardOp94]

Why the NYSE does not enforce the de-listing letter is beyond me, that stock ain't ever coming back

While I agree with you about Audacy's near-term prospects, the NYSE rule provides a company has six months of grace before being delisted.