Journal Register Co. (NYSE: JRC) has been given notice by the NYSE that its shares are slated to get booted off of the prestigious exchange.  The NYSE said in its statement that the company failed the 30-day $1.00 average for 30 consecutive days.  The exchange even cited its "abnormally low price" in the decision.

We have featured this one on numerous occasions via our own "stocks under $10" and the "Old Media / New Media" weekly newsletters as one that was going to buckle under its own weight.   We’ve even started identifying which newspaper stocks might actually be worth buying at today’s prices and those should survive the digital migration.  But just F.Y.I., Journal Register isn’t one of them.

Have you ever been on an airplane that lost it’s primary hydraulic system with over an hour left in your flight?  It’s scary, trust me on that.  The 52-week high is $6.48.  It even used to be $15.00 and even over $20.00.  This looks like a recapitalization is heading the company’s way in a hurry after shares closed at $0.265 today.  That will be just as scary as losing the primary hydraulic system.  The company waited far too long to explore its alternatives. We’ve even speculated last summer about the possibilities that the company would be at risk of servicing its debt.

We recently even noted that this stock could be one of the stocks that go to zero. Journal Register is hanging out with Elvis, Marilyn Monroe, Bogey, and James Dean.  Yep, it’s the Boulevard of Broken Dreams.

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There is nothing wrong with being listed on the pink sheets.  Despite the fact that getting information becomes nearly impossible, and despite the issues of no one wanting to own pink sheet stocks, and despite the fact that many institutions are barred from owning pink sheet stocks… yep. Nothing wrong at all.

Jon C. Ogg
April 11, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at [email protected] and he does not own securities in the companies he covers.

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