Dexo vs YLO (I like them both but I own more YLO)

DEXO still trading at enterprise value of 3.88x today despite credit rating cut and debt/EBITDA of 4.2x. YLO in much better position with debt ratio and digital revenue. YLO is trading at 3.1x EBITDA. If YLO traded at 3.9x, the per share common price would be over $1.00.

Any thoughts on the disparity in values?

Honestly, I think YLO is the better business due to digital potential and monopoly in Canada.

Place your bets, my analysis is from the ground up based on projected cash flow. To say the commons are worthless is a fairly hilarious statement. The analysts themselves have reasonable fundamental forecast models and unreasonable prices in my opinion. If you use their models to value the business, at least in my realm, I get commons worth more than their present trading price.

The company is not breaking any of its debt covenants and my discussions with the company indicate that they'll restructure the timing of their debt obligations by the end of 2012, and you'll have wished that you could have seen what I see now in retrospect. The multiples here are attractive to banks not repulsive. There is far more opportunity here than meets the eye if you simply look at stock price history and are afraid of lower prices like the average Joe. Buying back debt at market instead of Par/face value. Might I mention that I drive past their office 7 days a week.

Our default reflex is that the world knows what it is doing, and that is extravagant nonsense, -Jeremy Grantham.

Tribute to Stockhouse's valguy:

http://www.stockhouse.com/MyStockhouse/ViewMyAllInfo.aspx?u=3228286