RE: RE: Dex One Results October 25 monzie, it's not what has happened that you should be focusing on. it is what is going to happen. dexo and spmd both are pretty much mirror images of yellow media in terms of balance sheets and cash flow.. and they are merging and not giving away their equity stake to their creditors.
yellow media's management is giving up, while dex media's management is stepping up to the plate and winning for shareholders.
yes, SPMD and DEXO took a dive for anyone who owned before they filed chapter 11 separately... and are huge losses for anyone who has owned and then sold at these lower prices, but they are trading at price to free cash flow of around .15, and much like yellow media, they have huge upside if they can just not hand over the company to creditors.
where yellow media is failing (giving up 80% of the company), dex media is succeeding (keeping the residual cash flows for shareholders)... and both of them have about equivalent prices... but dex media has a little more debt, which makes you wonder as a yellow media holder::::
"Why can the americans manage to remain solvent when in canada we cannot?"
Well I'll tell you. The creditors and management are defrauding the shareholders... and frankly it's hilarious to me that the banking syndicate is the only group standing up for shareholders.. the rest more or less are just going along with it.
Regardless, I own Yellow Media, Dex One, and Super Media, but the upside for Dex One and Supermedia is MUCH greater in the long run because they aren't screwing shareholders. Yellow Media upside in the short run is greater, but I'll be straight up when I say that as much as they try to justify it in the courts ---- in terms of theory of debt and equity, looking back on today 10 years from now and the resultant cash flows that the business throws off, you will surely see that the creditors have systematically robbed the equity holders if this recap goes through per the plan of yellow media management.
Cheers to making money on all three, but Yellow Media had the most potential and totally flopped. I just hope that the deal gets sweeter or thrown out for a refinancing.