Dex One Corp (NYSE:DEXO)

TSIF (99.96) Submitted: 9/10/2012 7:11:27 PM : Start Price: $2.02 DEXO Score: +12.26

Sometimes with equities you have to use multiplication and not addition. When the proper mathematical functions are used you will find that Dex One Corp's "friendly merger" with SuperMedia LLC (SPMD) requires multiplication as in ONE TIMES ONE = ONE. Now the company's debt loads does require addition. SuperMedia has $1.6 BILLION in debt and a NEGATIVE $31 book value. Dex One Corp has $2.07 Billion in debt, minimal cash, but at least has a positive book value, (for now).

$1.6 B PLUS $2 B in debt is $3.6 Billion in debt and very little cash.

Yes, I do realize that both seem to have reasonable cash flow which has helped, but is not maintainable. Yes, mergers do generally reduce SG&A as duplication is removed. Dex One has been a speculators play toy for some time now as some speculators can't get over Dex One having been a $30 stock five years ago. There is a bit of mentality that some speculators have that suggest that a phoenix will rise from the ashes. Never mind that internet marketing is saturated and the decline has been consistant. Dex One has tried to morph since it's founding in 1841. I give them credit for not becoming a dinosaur even sooner, but they are out of goodwill writedowns from trying to buy their way out and the receivable contine to mount and $2B in intangibles won't pay the bills.