Special situations, growth, deep value, contrarian

Dex Media: 6 Reasons We See Attractive Risk/Reward For Near-Term And Next 18 Months

Dex Media (DXM), one of the nation's largest local marketing firms for small and medium businesses, may one of the best risk/reward small-cap equities, with upside of 100% near-term and as much as 15X in 18 months. Two key things seem to not be recognized by investors today-(I) Dex Media is a business generating fundamental momentum and high profit-margins, and (ii) an extraordinarily low valuation of 0.5X P/FCF is not consistent with the strong prices of its bank debt which trade at 52-week highs (FYI, media stocks trade at 10X P/FCF, not 0.5X). There are skeptics for this story, grounded on misperceptions about its capital structure and about the durability of its business model (transitions away

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