Wavelength Asset Management
Long/short equity

Dex Media: A Stronger Buy, After The Successful Debt Tender

DXM: A stronger buy, after the successful debt tender

A few weeks ago, we discussed why we saw positive asymmetric risk/reward with Dex Media (NASDAQ:DXM) with a roadmap to becoming a multi-bagger. It was an ideal combination of a company making an operational transition (from print to a multi-platform strategy) and a very compelling capital structure story (substantial fcf, major deleveraging, equity prices cheap vs. debt, etc). There is obviously significant execution risk here.

The notion of a radically undervalued stock happens with surprising frequency. In our decade-plus of long and short investing in TMT, we have seen this take place with numerous situations: the Sprint PCS affiliates, the rural cellular stocks, the towers, the radio and TV

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