Fabrice Taylor Yellow Pages Limited Y-T COMMENT Dec 10, 2013

It was left for dead last year. It has undergone quite a remarkable turnaround. Over 50% of their business is digital advertising and it is heading for 70%. They generate a lot of free cash and they are paying down debt with it. It trades at a low PE. There might be share buybacks in the future.

A real turnaround story. They are making a transition to digital and have brought about 50% of their business over. Did a great job in stabilizing the business, and now are really working on trying to increase the business. They have a “return to growth” plan to make their revenue, earnings and cash flow growth by 2018, and they seem to be on track.

This has evolved from a Yellow Pages directory into a media company. 62% of their revenues come from their media assets. They are repaying their debt very aggressively and improving their capital structure. They’ve done this in France, and are now doing it in Canada. Trading at very attractive EBITDA multiples.

This is one where if you like the name, you just continue to hold the name. The technical chart does very little for him. The stock looks like it is ready to stay where it is, or move even higher.

(A Top Pick May 24/16. Down 51.09%.) A major disappointment and a big surprise to everybody. Management was not of a quality that most investors expected. They did not communicate in a very transparent fashion. He took some of the profits when he saw the management team turnover at the end of 2016.

(A Top Pick Feb 24/16. Down 58.9%.) The print side is probably just going to continue to decline, but he thought the digital side was going to grow. They have now had a couple of bad quarters on the digital side and he got Stopped out.

Convertible 8% 2022 Bonds - They always have owned the convertible not the equity. It is a restructuring story. They think it is better to be in the convertible because they have a good yield and it is ahead of the equity holder.

(A Top Pick Nov 22/18, Up 12%)Convertible 8% 2022 bonds He owned the Yellow senior bonds, but then moved into these convertibles. Most of their revenues are in digital, but that has struggled. New management has cut costs a lot until free cash flow now stands around $100 million this year. Their EBITDA margins are now 40% which nobody expected. With that cash, they are paying down a lot of debt.