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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by rehsifylfon May 05, 2011 9:13am
277 Views
Post# 18533350

Don't see a lower open

Don't see a lower openThe key thing for YLO is how in on-line revenue srowing versus declines in print - and will they level out in time to protect the dividend.  39% growth in On-line revs from last year is good - but not sure that is fast enough - the key will be whether it is accelerating or not.  If they can get that number to 50% for the rest of the year - then they can keep revs flat if the print declines at about 18% - both seem doable. 

As for the normal course.  normally not a fan - but in this case, with the common paying 16% - buying a share a retiring, saves them 16% and even with their rating, 16% is pretty good return.  Combine that with the fact that by paying out less, they retain more cash flow, and the business looks more viable.  So in this case, I like them buying at anything under $5.

The overall market is goign to get hammered agains likley, so it will be tough to differentiate on YLO.

My take is that in the next 10 minutes, the bid is going to rise to above yesterdays close and then this will be daytraders heaven today.
Bullboard Posts