EverydayInvestor (< 20)

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Feeling Smart about Idearc

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February 29, 2008 – Comments (6) | RELATED TICKERS: VZ , IAR

I used to be a Verizon (VZ) shareholder, and I received shares of Idearc (IAR) in a spinoff two years ago. I immediately sold it, because I foresaw future sales decreases for yellow pages, plus it was not valued very cheaply by the market then.

As you can see by this graph, I made a smart move.

6 Comments – Post Your Own

#1) On February 29, 2008 at 1:27 PM, madcowmonkey (< 20) wrote:

That is why you are the EverydayInvestor! Smart move and look at the vlm after the drop. Something was written recently about this stock by another stockguru I am sure. Somebody is looking for it to come back up. There is always somebody waiting to pic the garbage to try and make a quicky.

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#2) On February 29, 2008 at 1:30 PM, EverydayInvestor (< 20) wrote:

At the right price it is a great company, puts out tons of cash. But it is too highly leveraged for a declining business.

I previously made a ton of money (120% return in under a year) in Deluxe (DLX), which is in a similar situation. At $15 back in 2006, though, it was just too cheap. Of course, by the time it got to $40 it was way too expensive.

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#3) On February 29, 2008 at 1:49 PM, PDTBiotech (94.41) wrote:

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#4) On February 29, 2008 at 2:18 PM, EverydayInvestor (< 20) wrote:

Tank: So what do you need? Besides a miracle.
Neo: Guns. Lots of guns.

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#5) On February 29, 2008 at 2:30 PM, TDRH (99.85) wrote:

Good call. Wish I had done the same with the DFS spinoff from Morgan Stanley. For some reason I had the illusion it would be an attractive buyout for say Wal Mart or another bank. In hindsight I should have seen it coming and realized they had probably tried to sell it before they spun it off.

Way to dodge the bullet.

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#6) On February 29, 2008 at 4:45 PM, EverydayInvestor (< 20) wrote: