R.R. Donnelley & Sons Company (NASDAQ:RRD)

CAPS Rating: 2 out of 5

The Company is the world's premier full-service provider of print and related services, including business process outsourcing.

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Player Avatar Lordrobot (92.49) Submitted: 1/23/2013 8:00:21 AM : Underperform Start Price: $9.72 RRD Score: -7.08

RRD is on the way out. The recent move up was due to short clearing and nothing else as a result of RRD's board using the cheap Buffett trick... a stock buyback. The Div is unsustainable. Margins are nil. It is a commodity business. There is not a single segment of the business that a startup couldn't take market share. Further, you have an Obama economy so the trend of reduced manufacturing will continue in the USA removing the need for localized print material. RRD has an old styled board and management; they have never moved off center toward the internet. They were dumb as a railroad business that never envisioned itself as transportation and missed out on the automobile and airplane. Its tunnel vision in a business which is a commodity. It is simply doomed over time. Its bond yield is lower than its dividend. This board is setting up the shares for a bilking and a reorganization.

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