Noble Financial Analyst Michael Kupinski believes that the resignation of CFO JP Hannan for John Abbot is “not a good sign” for the company. Kupinski says, as a result of the change, a restructuring is likely. Here are his comments, according to StreetInsider.com…
JP Hannan resigned his position as CFO this week, after over 6 years with the company under the Dickey regime. Kupinski has a “Hold” rating on Cumulus. Here are his latest comments. “We believe that JP Hanann’s departure is a sign that the company’s fundamentals are weak and that a capital restructuring is likely. Odds for an upturn in fundamentals appear low. In our view, national advertising for the company is expected to be weak and its stations are likely to under perform the industry as a whole. Equity could get wiped out in a capital restructuring. Near current levels, CMLS shares trade at 8.9 times enterprise value to estimated 2016 cash flow.” New CEO Mary Berner is coming up on a year with the company and has said the turnaround of Cumulus is a long-term project and the company is considering all options to fix it.
