Beware this new P.R.Hello all, I'm new to this board but a long-time stockhouse.ca member. Overall the board is OK, but we really should refrain from personal attacks and non-sense. If you're long or short fine, but drivel just keeps new investors out.
I've been an investor a very long time and one thing I've learned over the years is to listen to conference calls and read between the lines of all PRs. They are carefully crafted documents. This new one has left me with some concern:
The company reaffirms its cash dividend of
.65 annually per common share. The company has a stated dividend payout policy representing between 60% and 70% of Adjusted Earnings per share. The dividend policy is reviewed periodically by the Board of Directors of Yellow Media Inc. taking into account a number of factors including, among others, the current and prospective performance of the business
The reason there is concern is that there are several glaring caveats for the public here and that will protect YLO's backside. First, they have reaffirmed their dividend have stated a 60-70% payout. That is fine, and probably means they will pay this month but in the event their earnings dive (do we know this?), they will continue to maintain their 60-70% payout ratio. Thus, a dividend cut is not off the table. I believe their payout ratio is currently running at 110% ? Please correct me if I'm wrong there.
I'd like to jump in again because I believe their Internet business will grow and carry the company forward. Trader was a great sale- there were way too many new free auto websites popping up (autocatch.com, yahoo autos, etc.). Now if they can just show up how they will make money via the web... I think that Google might take a look at this down the road especially at these levels. My speculation only...
GLTA
bull