Wavelength Asset Management
Long/short equity

Why We Like Dex Media Into Q2 Results And Expect Visibility To Improve Throughout 2014

By Nick Celentano, Managing Director

Last November, we highlighted our positive stance on Dex Media (DXM), the nation's largest directory publisher and one of the largest digital players for small/medium business with 580,000 business customers, of which 200,000 use DXM digital services. At the core, we saw an equity valuation deeply skeptical of the company's future, particularly after the stock plunged from $24 to $4. The skeptical view, however, was not shared by: ((i)) the bank debt, which has recovered to August 2013 levels; and (ii) core equity holders, who have ADDED shares since mid-2013.

We believe the stock is a better buy today than it was in November, as it does not currently reflect the fundamental catalysts we expect

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