Yellow Pages Ltd T.Y

$50 million buyback

[HermannHaller]

I guess Yellow Pages continues to generate more cash than they know what to do with. This buyback will eliminate almost 25% of the equity!

Fun with math:

• NBF estimates $3.93 in FCF/share next year
• with 25% fewer shares, that goes to $5.16/share
• applying current multiple of 3x FCF, stock should be at $15.48 after buyback

And enjoy the 7% dividend while you wait.

[blindpig]

This has to be one of the most mispriced stocks on the TSX. With 2 years of fcf they took out half of their shares.

[vr6loco]

A real head scratcher, thought this could have taken off by now. This seems all well planned, eliminating all debt, buying back a bunch of shares (again), conveniently at a low (well timed) price. It looked like RBC was trading it down. Pension plan getting payed in advance.  We still have a revenue decline, which should stabilize in the next 2 quarters or so. Next May probably see another

[Richeer]

I think they will keep doing this until they can wipe out most of the small share holders and then take it to private.

[HermannHaller]

Small shareholders will have 25% fewer shares, just like large shareholders. I'm not sure what you mean by wipe out? And I don't think any shareholder, large or small, would stand in the way of  privatization.

[whodathunkit]

The 25% fewer shares are across the board.  But, the NCIB is on the open market and basically are from small minority shareholders.  So ultimately there will be fewer minority shares.  The 3 large shareholders are slowly taking over the company by using the company money to do so.  Once it is small enough they will take it private and keep the excellant cash flow for themselves

[stockstarker]

The issue I have with this share buy back is that as a small shareholder I have no say as to if I want to sell my shares back to the company. They already have all the votes they need to push this through. If they want my shares at least pay me the fair value of the real value not some number based on limited shares traded over a short period of time. The daily volume of shares traded a day is

[blindpig]

Deja View!  We discussed all these pro/against arguments a year ago.   

[stockstarker]

I guess they figured they got away with it last year they will try it again.

[Richeer]

This is a complete rip off shares from small shareholders. You never know what kind of deal that the big,  70% share holder will get from sgare buy back deal. At least they helped pushing share price down in past few days. I strong believe the big guy will make the company private for itself in the end.