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Posts tagged ‘yellow media’

Another Leveraged Play: Dex Media

I’ve had a position in Yellow Media (Y.to), 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

Week 85: Some Short Thoughts on Nam Tai, Yellow Media, Radian Group and Atna Resources

Portfolio Performance

week-85-Performance

Update

I finished a post over the weekend giving some thoughts about the macro-environment and how it pertains to my portfolio.  As a consequence of the conclusions drawn, my portfolio has been growing and my cash level decreasing, to the point where I have now been on margin for the last month and a half.  Right now I have about 11% margin.  While I am typically wary of using margin, when I look at what I own there are no stocks that I feel compelled to reduce.  We’ll see if this turns out to be folly.  This is, however, about as much risk as I’m comfortable with, so any stocks added hereon will have to be balanced by equivalent removals.  And as per the strategy I profess, I will sell without remorse if the market turns abruptly.

On to some of the moves I made over the past 3 weeks. Read more