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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Post by markvrdon Feb 09, 2012 12:01pm
496 Views
Post# 19509640

Bought some commons at 17

Bought some commons at 17

I don't see the results being as that bad and certainly not as ugly as they could have been.   Canpages consolidation should boost EBITDA margins from that side next financials.   The online Revs are up to 90M which is a quarter to quarter gain as well as year to year increase.   Revenues and EBITDA are down again quarter to quarter but not as drastically as they could have been.  I think the draw on the revolving credit can only mean they're going to pay off some 2013 MTNs and means the banks haven't locked down all the cash.   The revolving LOC remains their lowest interest debt instrument so knocking off 2013 MTNs saves money that way as well.   I don't see the large draw on the LOC being anything to do with needing money for operating costs since there is no logical reason for those costs to rise that drastically -- they are going to knock down more 2013 debt. 

The negative response on the SP today is obviously due to the pref dividend cut.   However, to me (and granted this is easier to say since I don't hold prefs) I think it was a good business move towards avoiding defaults in 2013.  Suspending the dividends also helps keep a bit more cash buffer in place for operations for now and is a logical move.   It's not as if there was any investor confidence to lose ....

It's kind of a shame they couldn't re-negotiate maturity dates on some of the 2013 MTNs and buy back some ultra-cheap prefs at deep discounts instead though.   Diamond's C's and D's are looking pretty cheap today.

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