ylo_chart.pngYellow Media Inc (TSE:YLO) (PINK:YLWMF) price action brought some disturbance among traders after the prevailing downtrend seemingly overextended and the company had some controversial news to go with the confusion.

YLO didn’t manage to retain the bullish momentum from Wednesday and fell 8.5% today. The share price had added over 17% a day before after bouncing the bottom on speeding up downtrend. The trading volume was 7.3 million today, significantly above the average of 4.3 million, meaning the negative sentiment might prevail tomorrow as well.

A sharp drop in price had already occurred this Monday and a short lived correction initially suggested there might be buying opportunities here as the downtrend could have overextended. The idea might still be true – the company announced yesterday that the Federal Minister of Industry approved the sale of Trader Corporation.

yellow_media_logo.jpgYellow Media expects to sell the entity to selected funds by the end of July 2011. Following the definitive agreement, made on March 25, 2011, the corporation will be sold for $745 million in cash. The price is still subject to working capital and other adjustments though.

Proceeds will be used to propel the core business of Yellow Media and strengthen their capital position in general.