Yellow Media Inc (TSE:YLO) (PINK: YLMPF) saw their share price tumble further down on Tuesday on a persisting negative sentiment relating to their fundamental situation.
YLO lost another 17.9% on Tuesday on a heavy daily trading volume of nearly 10.4 million and recorded a new 52-week low of 55 cents. The stock has lost 91% over the past year, thus this further decline isn’t surprising. Yellow Media had no particular news during the day.
YLO market cap went down to $283.8 million, but that is still justifiable as the company’s book value is negative $2.6 billion. Yellow Media has over $8.6 billion in intangible assets and goodwill costs, which look good on the balance sheet but doesn’t carry much of a real value.
YLO revenue has been steadily decreasing every quarter of the past year. The company’s bottom line turned red over the past couple quarters, but mostly due to expenses on discontinued operations. Despite the scary looking income statement, the company still generates cash from operating activities.
The more troubling part is the financing activities, which generate constant losses in hundreds of millions of dollars. That is because the company has $2.28 billion in long term debt, maintenance of which forces them to issue new debt every quarter. Dividend payments also generate a significant portion of capital leak and are thus being gradually cut down.
In this mix of negativity, on Sep 06 Yellow Media’s Chief Financial Officer announced he will be stepping down and will be replaced, on an interim basis, by Ms Ginette Maille a senior financial executive of YLO.
