JohnD

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    • Thu May 8th 00:16 AM | Rating: 0 0
      Commented on:
      Idearc, Inc. Q1 2008 Earnings Call Transcript
      I attended the annual mtg in Dallas and overall I left with a concern that the mgmt team (CEO) and the Board seem to be overly employee friendly and not as stockholder friendly. If I am correct, the consequences will likely be that mgmt will not cut deeply and quickly enough and move to restructure (write down, merge and spin off business units) in order to keep earnings growth and cash positions as strong as they should be to move the stock back into the double digits. Furthermore, they need to reinstate a dividend, even if it is a small $0.08/quarter payment (only $12.5m per quarter). As a significant stockholder, I lose sleep thinking they may be investing a significant portion of their free cash flow into internet operations. It would be a shame to learn at the stockholders expense that they have a zero percent chance of moving their high margin revenue stream from the print business into a high margin Internet search business before running out of cash.
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    • Sat Mar 15th 00:13 AM | Rating: 0 0
      Commented on:
      Is Biovail's Founder Exploring Privatization?
      Melnyk's "overtures" in 2005 should not be characterized as "similar". As a former CEO of public, NASDAQ listed company I can tell you that the [legal] risks associated with attempting to privatize the company or take control/buyout of the common stock by a member of the board of directors is astronomical. Think of all the people that bought stock at a price above the potential buyout price. There is sure to be a class action lawsuit and the likelihood of the plaintiff succeeding is far greater than if it is done by someone not on the BOD. Therefore, Melnyk's resignation may be the first step in a more serious effort to take control of Biovail.

      - John D
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    • Mon Mar 3rd 19:30 PM | Rating: 0 0
      Commented on:
      The Idearc Fiasco: Stock Worth a Second Look?
      The fundamental issue here is they are a cashflow monster that can manage short term expenses (payroll/overhead for the most part) with reduced advertising revenue and maintain a stable cash flow picture. With revenue falling about 2% a year, not considering short term economic fluctuations, they could continue their dividend level for the next 7-8 years along with a payout ratio of under 60%, pay their mandatory $12m debt reduction @ quarter, and buyback some of their stock to improve their EPS. The problem and concern is that they will try to be something they certainly fail at, migrate quickly (and at great capital cost) to a technology company (Superpages & the like). That would eliminate all excess cash after they pay the mandatory quarterly debt reduction. This scary story is further enhanced by insensitive [to the analyst community] statements from the original CEO and the recently departed Chair and acting CEO saying "more of the same, our last years capital spending strategy will be maintained, we will continue looking into M&A and grow our web-based directory business". These guys don't realize they are the furthest thing from a Google, they are all ex-phone guys. Get with the program ! Tell the world you will optimize your monsterous cash flow, cut expenses, and stop investing in M&A and organic web-based directory service. Use the cash to buy back the stock at a 50% return on capital, talk to the people who hold the debt covenants requiring $12 million a quarter payback (anyone/lender with half a brain would agree that buying stock with a 50% return on capital is more worthwhile than retiring debt that cost 6 or 8%). That will drive the stock, bring health to the company's fiscal situation and all Idearc to go buy someone for equity when their stock is back in the $18-22 range. Hello. - John D.
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