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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Post by milliondollaron Oct 26, 2011 5:03pm
504 Views
Post# 19184199

Book value over $4 per share

Book value over $4 per shareeven after the huge writedowns that we all know about.  Current shareholder equity is $5 billion less $2.8 billion writedown = $2.2 billion shareholder value divided by the 500 mill shares out = $4.20 book value.
YLO is a cashflow machine and now that the common dividends have been stopped, the debt will be payed down in a timely fashion.  I think YLO is being accumulated by a potential suitor who will try and buy it out for 90 cents a share.  This could spark a bidding war which could see YLO top $2 a share in the next month.
Anyhow, those who got in already, or r thinking about buying in, i think the downside is almost zero now.  Earnings are out in a week and by the time they are released, YLO could be over a buck.  All of the bad news has been baked into the stock.  Now you have shorts in a scramble to cover and a suitor (or suitors) hungry to possibly buy YLO out on the cheap.  Watch this stock gap up in the morning.  My bet is we close over 60 tomorrow

This post is all in my opinion
Bullboard Posts