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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by rythmanon Feb 06, 2009 12:51pm
448 Views
Post# 15758665

RE: Globe Article on Yellow Pages today

RE: Globe Article on Yellow Pages todayWell, first of all we have to assume that this analysts assumptions about income and the recession are right. There may be reduced media advertising, and I would expect that, but I don't beleive that there will be a 50% reduction in media revenue as the current price indicates. Funny how he never mentioned that the fund is only paying out 78% of current revenues. Then he talks about retiring inexpensive debt for expensive debt. This could be doubtfull given the current interest rate enviroment and the fact that most of the debt dosen't come due for three years. Do you know where interest rates will be in three years? As for the deferred tax bill. Well management has said repeatedly that they see a smooth transition back to a corp, so I am sure that they have factored this in. Next, do you think that they would have bought Autotrader and retired 2 million shares if cash was tight? The yield on the trust reflects current prices but not the issue price and should not be pointed at as if it is too high. It all depends on when you bought. All the current yield represents is sentiment on all of this current news. Is a distribution cut built into the current price, definately, can they reduce it, definatey, will they, well they have repeatedly said that they won't. So why not wait until the financials come out next week. This is a hard one to call, but unlike the analyst I wouldn't want to put my reputation on the line like this if I wasn't sure. Maybe he is, maybe has nailed it on the head, but I will wait until the company reports before I make my next move. cheers rythman
Bullboard Posts