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Posts tagged ‘dex media’

Week 141: Portfolio Allocation

Portfolio Performance


See the end of the post for the current make up of my portfolio and the last four weeks of trades.


Recent Developments

I’ve been on vacation and so am a couple weeks late getting an update out.

My portfolio had a big move up, thanks mostly to the movement of Pacific Ethanol and MagicJack. Pacific Ethanol had a one day gain of 67% last Thursday, and is nearly a 4-bagger since I bought in. MagicJack is nearly a double.

But what has really helped is that even before the run-up Pacific Ethanol was my largest position. MagicJack was my fourth largest position.

One of the ironies of writing about the stocks I own, is that what I write about most is often not what I have the biggest position in.  The stocks I have the most to say about are the one’s that are on the cusp, where I am constantly debating whether to hold on to them or not.  My biggest positions; Pacific Ethanol, Yellow Media and MagicJack, for example, I have written only a single post about.  That post states the thesis, and as long as that thesis is valid I don’t have much else to say.

Yet the stocks in my portfolio are far from being of equal weighting.   I usually have a lot of stocks. Unless the market is going down, the stocks number at least 30 and has recently approached 40. But most of the positions are quite small, in the 1-2% range.  These as starter positions; enough to keep me interested and following the company, but not enough to hurt me too much. If my thesis for these companies plays out, or if, as I learn more I become more comfortable with the idea, I add.  If not, if the company materially lags or sometimes if time simply passes and I lose interest in the idea, I drop the position and move on. Read more

Another Leveraged Play: Dex Media

I’ve had a position in Yellow Media (, for a number of months, but until this week I had not dived into its American counterpart Dex Media (DXM).  The reason was timing; I didn’t get the chance to look seriously at the company until the middle of April and shortly after I looked Kyle Bass recommended the stock at Ira Sohn, the stock price took off, and I was reluctant to chase it.

I’ve waited patiently since then thinking that the stock would come down once the shine wore off.  This week I was rewarded and able to pull the trigger in the $14’s.

Before I go any further on this one let me just give a hat tip to Glen Bradford for all the work that he has done.  Glen has discussed Dex Media and its predecessor companies Dex One and SuperMedia in detail on his website and on Seeking Alpha, and much of my own research started by reading his work.

The story at Dex Media is, of course, not unlike Yellow Media, but its also quite similar to YRC Worldwide, and fits in with my big idea for the year of investing in leveraged companies while the sun still shines.  To illustrate the comparison to YRC Worldwide, when I bought the stock it was a $50 million dollar equity with over $1.3 billion in debt.  You had a tiny sliver of equity that stood to act in a highly leveraged way if things played out right.  Same thing with Dex Media. The equity currently sits at a little over $150 million.  The company has debt of over $3 billion. Read more