Five days ago, Saga Communications delivered first quarter results that were less than stellar. Expense reductions were not enough to prevent Saga from seeing its net income dip to $758,000 ($0.13 per share) from $1.68 million ($0.28). However, Saga’s debt leverage ratio is 0.92, with just $10 million in long-term debt.
That could be particularly attractive to investors. It’s just one theory as to why Saga shares rocketed upward by 30% on Tuesday.