Gives heads a shakeI look at all the fools on this board trying to make believe that YLO is a buy at these levels, and the even dumber ones like byloselhi who were buying shares ON MARGIN at much higher prices, and apparently bought even more on Thursday just before the share price collapsed again. That poor guy must be close to bankruptcy.
YLO has multiple problems, the largest being too much debt backed up by nothing more than "assets" made up of goodwill and intangibles. Those "assets" come in to question when the company starts selling off parts of their business for much less than what they cost. How solid is the goodwill on those parts of the business? If they start writing off chunks of goodwill, does anyone really think the bansk are going to allow YLO to continue to pay out the ridiculous dividend? Not a chance.
Some may say that YLO is making enough to pay the dividend. Truth is, they are just barely doing that, and are at the very top of the range they set for payouts. Add in the decreasing margin they have been experiencing, and it is clear that YLO would not be covering their dividend in the not so distant future, and would be forced to cut anyway.
The best thing for YLO to do is slash the dividend in half, or better yet, eliminate it altogether, and get that debt down. The share price isn't going to go up until they address these issues, so they may as well cut now. stubbornly dragging their heels is only making matters much worse.
Managment has destroyed the savings of a heck of a lot of people, and it is time to stop the carnage.