RE: RE: RE: RE: RE: Shorts vs Longs --> Aug 4I do NOT believe this. You guys are talking about dig deep into this POS instead you should dump this stock at the beginning @ $1.60. In the last 3 years, this is the best quarter for YLO to make a lot of money to pay for their monthly distribution and this time without the help from Autotrader (cash cow as Dr Mike called it), YLO is actually losing money at 5 cents per share.
Mr. Tellier kept saying about saving $800M within the next 3 years by reducing the quarterly divident along with $700 M from selling autotrader by trying to payoff $2.5B (this number from Marc Tellier). I still do NOT understand what is the saving with reducing quarterly divident when you are NOT making money from one of your best quarter.
When Precision Drilling was halted to payout their distribution from recently purchase American Driller and with the dryout from Financial meltdown. PD stock was dropping along with the NA market but their fundamentals are strong with the best low cost driller operating services, as commodity market is back to business their business model is strong and their stock is fighting back from low $3 to the latest on at more than $15 and still NOT paying divident yet. They are making more money at 18 cents per share last quarter.
Economy is always looking for oil and natural gas therefore their business is always around. I can NOT say that with YLO, rushing out to buy AutoTrader a few years ago to create online portfolio and then selling Autotrader away at $500M loss.
Marc Tellier blamed it on the economy and fall out of the advertisement world. They stopped issuing forecast on future revenue and earning is a big mistake because they all knew they will NOT making money until 2013 with their current business model.
Stock will be testing 60 cents then your annualized divident of 15 cents is going to be 30% yield again. I do NOT think the divident is going to last long after next quarter report in November 2011.
Please do NOT chase this stock for a fat dividend because today trading is teaching you a hard lesson NOT to do it.
It will have a dead cat bounce effect then looking for the bottom build up then you can go in and purchase them but doing it because you think their last cut dividend is going to stay.
Good luck