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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Post by Sailsawayon Sep 06, 2012 10:24pm
250 Views
Post# 20328402

fwiw...

fwiw...


In Q2 2012 the company made 12 cents per common share based on $67.7M in net earnings which compares very favourably to the 8.5 cent stock price, even if current shareholders have access to only 17.5% of those future earnings thanks to the dilutive effect of the recapitalization. Assuming net earnings of $250M and based on 28M shares outstanding post-recap, an EPS of about $9 will be achieved. With a very conservative P/E multiple of 5 that calculates to a $45 stock price post-recap or a 22.5 cent stock price pre-recap, a 165% gain from today's close of 8.5 cents. The preferred shares would be worth 12.5 times that or $2.81, a 275% lift assuming a 75 cent average stock price between the four series.

Worth a bit of thought at least...

Bullboard Posts