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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by markvrdon Sep 28, 2011 11:20am
244 Views
Post# 19093101

RE: Where is Mark today??

RE: Where is Mark today??"Was" new?   GW I am still here.   I am just not getting into today's party because there is no point.   Yes, some more investors will get hurt and lose their savings because of the heavy duty manipulation of the stock price.  

However, I don't see that anything particularly unexpected has happened.   Goodwill write downs have been predicted by many and I think most of us have agreed that getting it over with now was the best thing.   As I mentioned in another post a couple of weeks ago, even after the write downs, the company has a strong book value many times the current share price -- I'd rather it be a realistic book value and would rather the write down occur now than loom in the distance and give fuel to the shorts.

I wasn't expecting a dividend cut until at least after Q3 but am only bothered by it from the point of view that it will create some downwards pressure due to some mutual funds exiting.  However, maybe those mutual funds were not the ones to drive this back up anyway.   As they sell, the shorts will finally cover and, at these prices, the hedge funds and bottom feeders should be around in droves.   Today's process could, more than anything, serve to give YLO stock some life.

Once the shorts have their party, I don't think it's going to take too long for the market to figure out that annual earnings exceed the share price, that there is a clear debt repayment plan, and that the financial picture is looking more and more solid.   I do feel it would have been better if the company could have payed off its higher interest, albeit longer term debts first.   However, with nearly 800 million in debt reduction/buybacks behind them, increasing online revenue and a solid, albeit eroding print-based revenue, there is pretty decent future ahead.   It's going to be a smaller company perhaps but a more efficient one that isn't as burdened with debt.

I'm not averaging down today, simply because I already did at 51 cents and I don't want to over-extend my position and put too much at risk.   However, I'm certainly not selling either.

Please quit saying no offense when you say things like "he had no idea".   I had and have a fine idea of what I'm getting into.   Let's see what it looks like even in a few months. 

Mark
Bullboard Posts