Yellow Media Inc (YLO)

Hey guys, Haven't had much time to post in the last little while as I have taken a new job...

Has anyone been looking at YLO lately? I haven;t had time to go over this company but get the feeling that they are a good business with a huge amount of debt.

I will post more later but figured someone else might have a quick opinion as well.

I took a quick look at this one after seeing a huge drop. Two things. One, the financials don't look good. Too much debt if I remember correctly. Two, their core business is obsolete (not just on the edge, it is well past the time of milking declining cash flow as well). When is the last time you used a paper phone book. Who is still paying money to list in these things? I remember doing bookkeeping for a security company a long time ago that was listed, and I saw they were paying enormous fees, and questioned the value of it then. Now, with the internet (and especially with the portability of smartphones), there is no need for this product any longer.

Question to ask is what other businesses are they in besides phone books? If there is something else that could potentially keep them alive, then a case could be made. I took a very quick and superficial look and really haven't looked past phone books.

From what I gather, they have a whole suite of other components to their business, including online listings and advertising, but I'm quite weary due to the recent price drop and their debt. I think they need to make some core changes to their business in order to rebound. I'll keep following them a bit to see what happens. Maybe they will bottom out and begin a slow and steady ascent... until then I will just watch.

Even if they have other businesses, the listing fees from the Yellow Pages were far in excess of what they could expect to earn from advertisers in an online version. We need to learn a lot more about how they expect to make money and their different income streams before going anywhere near it.

With that said, maybe a lot of people are looking at it superficially like me and there is buried treasure here relative to the current stock price. I don't see it, but I haven't really looked. If you find something in YLO with potential, let us know and I will take a closer look.