RE: Third Quarter Earnings
Adjusted earnings which factor out one-off accounting hits and are a good reflection of actual cash earned were pretty solid as well at 40 cents for the first half (see Q2 MD&A and the CNBC website link below).
https://data.cnbc.com/quotes/YLO.TO/tab/5
There have been several substantial non-cash hits this year which make the earnings look uglier than they really are (it is of course ugly that they need to write off 50 million against the suspect purchase of ziplocal for example, but at least it's not something that will whack them quarter after quarter).
SP reflects the fear of bankruptcy (which seems quite unfounded but will depend on ongoing revenues). I also reflects risks that transition to online business will not be fast enough, sell off by funds that have TSX 60/TSX 300 listing requirements, general apathy, general rainy weather, fear that phone books are being used for cat litter, triple witching hour, weekly angst over Greece, Wall street tantrums about Obama administration policy, bank pressure to ensure that YLO rating goes down so that covenants kick in so that banks can force their debt to be paid back faster, concerns about firing Mr Paupe, concerns about not firing Mr Paupe, concerns about reverse splits, loss of dividend, loss of more dividend, FEAR, FEAR and more FEAR. Hmmm.... that's a classic run-on sentence isn't it? Oh and we forgot the 140-million-now-down-to-60-million short position. They've been playing some games too. I think it will all come out in the wash though....
Mar