RE: RE: CHUCK16: RE: RE: What bugs me!Capharnaum:
Thanks very much for shifting the topic to something concrete and about the company.
Your points about earnings are good ones. A good place to look at earnings history for those who aren't aware is the CNBC site:
https://data.cnbc.com/quotes/YLO.TO/tab/5
Looking at quarterly earnings, you can see that Q1/Q2 this year are very much in line with past years and pre-recession numbers. Looking at the annual view, EPS is consistently more than the current share price. In a single year, earnings are MORE than the current share price. There is a small
projected earnings decline this year but it's based on a very low Q4 estimate from the analysts when typically Q4 is a very strong online advertising quarter due to pre-holidays advertising and ramp up in the retail sector. What does this mean? There is a very good chance annual EPS will go UP this year.
The company is definitely not going away anytime soon with those kinds of earnings. Can/should they support a 65 cent dividend -- NO WAY! However, they can definitely reduce debt and invest in the business. They can also continue to support a more modest dividend while they buckle down for a while. It's still 19% at current share price which beats 95% percent of dividend plays out there.
Another thing which is very interesting is this point raised in the Globe:
https://www.theglobeandmail.com/globe-investor/investment-ideas/number-cruncher/looking-for-bargains-by-the-book/article2127108/
This article is about value investing in current times and points out several plays on the TSX that are currently trading with low price to book value ratios. In times like this, you do get quite a lot of these plays and I'm sure many of these companies' situations are well known people on this board. However, the one with the lowest price to book ratio is interestingly, YLO coming in at .08. This means that at the time of this article (when the price was higher), YLO was trading at less the one tenth of book value. Yes, we all know that their "goodwill" assets need to be written down soon because they are probably too high for their current market position. Yes, a related paper loss is coming soon because they will need to write down "goodwill" associated with the auto trader divestment.
However, even with write downs in intangible assets coming, this thing is still trading far below book value and will be even after any write-downs.
These are some points well worth looking at and judging independently rather than taking the word of analysts or certain posters on this board.