NEWM - A Surprise Buyback Could Jolt Shares Of This Micro-Cap Newspaper
It's hard to underestimate the significance of the Lee Enterprises (LEE) buyback plan announced yesterday. It's the definitive signal that Lee Enterprises is back on the track of being an industry leader and off the road to bankruptcy.
Given Lee's $152 million market cap, a $10 million buyback would take out almost 7% of its shares at current prices. Generating $125 million of annual EBITDA, Lee Enterprises can easily pay its less than $50 million of debt servicing costs and minimal capex. That leaves plenty of financial firepower to buy back shares