Lee back on the big board

Lee's share prices have stayed above $1 long enough to meet listing requirements on the New York Stock Exchange. CEO Mary Junck has often said that Wall Street is undervaluing Lee, and repeated that claim Tuesday.

"As we have noted previously, we believe the long-term prospects for our company remain strong and will become increasingly apparent to investors as the recession begins to recede. Our newspapers and online sites continue to reach the vast majority of adults in our markets, far more than any competitor, and we continue to stand out as the leading provider of local news, information and advertising in our markets."

Lee stockholders voted on and approved a reverse stock split in March when the stock was hovering around the 30-cent mark. The reverse stock split was never put into effect.

Stock closed Tuesday at $1.83.

A closer look at Form 8-K

Want a closer look at Lee's earnings report? Here's Form 8-K, which is required by the Securities and Exchange Commission. It includes a letter from CEO Mary Junck, who says the company's "streamlining of costs" is on track.

"Thanks in part to 22 percent reductions in the third quarter, we expect to reduce full-year 2009 cash costs, excluding unusual items, about 17 percent below 2008, a decrease of nearly $140 million. Among our many cost actions, we have completed page width reduction across the company, realigned staffing and consolidated or outsourced printing and distribution in several more locations."

Money spent on newsprint and ink has dropped -- 41.4 percent in the last fiscal quarter. Compensation is down 22.4 percent in the last quarter, and 18.3 percent from a year ago. Circulation is down 6.3 percent in the last quarter, and 4.9 percent from a year ago.

The letter also points out that the previously voted on and approved reverse stock split will not take place. (Which is one of those things that happened while this blog was on hiatus.)

You can also see Lee's other SEC filings.

Lee will cut $100 million more

Sorry for the disappearing act, and thanks to everyone who kept the conversation going the past couple of weeks. Let's catch up on the latest Lee hijinks, shall we?

At the annual stockholder meeting on March 10, shareholders approved the reverse stock split. The stock price has hovered around 30 cents since (and the weeks before); the 52-week high was $12.50 and the low was 24 cents. Bigger than that, though, CFO Carl Schmidt said the company will reduce costs by more than $100 million. (Via e-mail tip)

The St. Louis Newspaper Guild reports that Lee's operating profit is 20 percent. Remember that when you have to take your unpaid time off. Capital Times Co. also is pretty profitable. (Via e-mail tip)

The New York Times is selling its jet. It's generating a lot more press than Lee's jet did. They're asking $9.5 million for the 1997 Dassault Falcon. Lee had a 13-seat 2006 Cessna 560XL Citation Excel. (The Swiss Air Force has a few of them too.) Lee's plane is now registered to Blackwell Aviation in Davenport. Lee's plane should have been worth more than $6 million.

What else did I miss?

Reverse stock split: Won't help

Chicago's Morningstar says there's really no benefit to Lee's reverse stock split and confirms speculation that Lee is only making the move so it won't be delisted from the New York Stock Exchange.

Lee tries reverse stock split

To stay on the New York Stock Exchange, Lee is going to try a reverse stock split. That will raise the stock price, but the move usually doesn't work out so well: About 75 percent of those who do a reverse split end up trading lower.

The reverse stock split will convert as many as 10 shares to a single share; the company will present the plan to its shareholders at its annual meeting on March 10. Stock is still below 40 cents a share.