Seeking Alpha
Editor's notes: DXM's transformation and rapid deleveraging leaves shares deeply undervalued. TMT-focused fund Wavelength Asset Management sees triple-digit upside as its multi-platform strategy pays dividends.

By Nick Celentano, Managing Director

Dex Media, Inc.: A Potential 30X Bagger…

We are bullish on Dex Media, Inc. (DXM), the nation's largest directory publisher and one of the largest digital players for small/medium sized businesses. In my 15-plus years as a TMT investor, I view this company as one of the best risk/reward opportunities that I have seen.

The positive thesis for the stock is predicated on the combination of: (i) a successful transition from traditional print to a multi-platform strategy; and (ii) rapid debt deleveraging (a $400-$500mm reduction per year) resulting in a potentially massive appreciation of the company's underlying intrinsic equity value.

  1. The company is very profitable today, generating cash earnings (excluding amortization) of $480mm

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