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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Post by gpqithspon Mar 03, 2011 7:24am
653 Views
Post# 18223860

Conversion costs

Conversion costsI 've been reading this board for quite a while now and I'm wondering why no one has provided this explantion / questions about the conversion costs yet.

First off, I agree with all that 30M$ to convert is very expensive.  My reading of the situation is that with 300+ «corporate actions», YLO needed a lot more paperwork to convert.  I think that the process had to be done all over for every company within the company.  Now, looking at this way, doesn't make it less expensive but a little bit more understandable.  Can this be a reasonable explanation ?

To me, the real questions are:
Why does YLO maintain such a complex structure ?  Once the conversion costs behind them, what are the advantages or future hidden costs with this complex structure ?
Why didn't Tellier provide a bit more explanationson these costs ?

I keep being positive on the company, I doubled my position lately.  Even if it makes a stint below 5$, it should rebound nicely as it did everytime the stock went down in the last couple of years.  This has not been a money drain to me but certainly not my best investment.  Now let's hope YLO gets back above 6$, sell half the position and enjoy the income on the lower average cost shares left in hand.

glta, gpqithsp
Bullboard Posts