PostMedia (TSX:PNC.B) is a Toronto-based media conglomerate that consists of publishing properties from the former Canwest. It is known for its national paper, the National Post, and it owns a broad array of local papers and tabloid dailies. Shares of PostMedia spiked 12% in late afternoon trading on April 13. However, the stock had dropped 39% month over month.
The company announced it would delay the release of its second quarter quarterly report on April 6. Investors can expect to see this delayed report sometime in May. This is not a good sign for the media conglomerate, especially considering the positive results for others in this sector.
Many media companies have reported higher-than-average activity as locked-down citizens have driven engagement.
Print media has been in crisis mode for years now. PostMedia CEO Andrew MacLeod will take a 30% cut to his salary as the company contends with the COVID-19 outbreak and its impacts on broader society.
This will include precautions to be taken for its Post employees.
There is not a lot to like about PostMedia as we approach the midway point in April. The company currently possesses a flawed balance sheet.
It is unprofitable, and there is no immediate path forward to achieve profitability. This is a small cap in crisis-mode that does not have the upside to justify a buy-low move right now. Investors should look elsewhere in the media space.
