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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Post by rythmanon Nov 04, 2009 3:49pm
205 Views
Post# 16453342

read the quarterly update...

read the quarterly update...I liked the write down on trader 315 mill, but I didn't like the cancellation of the 5.5% unsecured convertible debenture. I would rather they use the cash to buy back the trust units paying 15%. (probably only management own these, otherwise why do it, this looks bad to the investment community, don't forget we all took a .36  drop in income so they would get the cash to do this. its a little self serving and the debentures are unsecured, ie no risk to shareholders). The online growth was ok at 26%  but I didn't like the drop in cash flow of 19 mill or distributable cash of 13 mill.  

Net:  increase in vertical media equals about 26% or 16 mill for quarter, but decrease in directories I believe was 8.5% or 31 mill per  the quarter, net 3.8% drop in revenue. That's a substantial drop in directory advertising in one quarter but given the recession might be expected.

In my mind its a slow ship sinking and it looks like management wants their money out now as they don't see any price appreciation (ie convertible debentures).  I think there are better opportunities to be had elsewhere.

I sold my remaining 6500. Slightly ahead of were I bought it. Maybe I can't make money on this afterall.

Cheers rythman
Bullboard Posts