The Zacks Analyst Blog Highlights: SuperMedia, Dex One, Google, Yelp and …
CHICAGO, March 22, 2013 — /PRNewswire/ — Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include SuperMedia Inc. (Nasdaq:SPMD), Dex One Corporation (NYSE:DEXO), Google Inc. (Nasdaq:GOOG), Yelp, Inc. (NYSE:YELP) and Sprint Nextel Corp. (NYSE:S).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Thursday’s Analyst Blog:
Can Yellow Pages Make a Comeback?
SuperMedia Inc. (Nasdaq:SPMD) and Dex One Corporation (NYSE:DEXO) , two of the nation’s largest “yellow page” companies, announced earlier this week that they have filed for Chapter 11 bankruptcy protection. This is part of a plan to merge into one entity. According to Dex One’s General Counsel Mark W. Hianik, the merger will result in annual savings of $175 million. The merger plan, revealed in August 2012, has received support from shareholders as well as a majority of the company’s lenders. As per the Chapter 11 petition, Dex One has $2.84 billion in assets and $2.79 billion in debt.
SuperMedia has declared assets of $1.4 billion and $1.9 billion of debt. SuperMedia’s Chief Financial Officer has said that the companies will be able to utilize $1 billion in net operating losses from Dex One to save around $400 million in income taxes in the future. This is not the first time these companies have filed for bankruptcy. In 2009, SuperMedia filed, emerging only in December that year, with Dex One following suit the next month. The single entity formed out of the merger is expected to exit bankruptcy in 60 days. What this development draws attention to is the dwindling fortunes of the yellow pages business. There are several indications that the directory business is steadily shrinking. With the proliferation of digital media, the likes of Google Inc. (Nasdaq:GOOG) and Yelp, Inc. (NYSE:YELP) have challenged the paper directory business in a manner it is finding difficult to combat.
For instance, leisure-related searches, such as restaurant locations, have moved almost completely online. This has led yellow page companies to invest more in improving their digital business, through which their customers can have an online presence. Additionally, many larger companies have sold or spun off their directories businesses. In fact, the companies in question, Dex One and SuperMedia were both formed as a result such moves. Dex One was formed out of the directories businesses of Sprint Nextel Corp. (NYSE:S) and Qwest Communications, which no longer exists.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact Zacks Investment Research 800-767-3771 ext. 9339 firstname.lastname@example.org http://www.zacks.com
SOURCE Zacks Investment Research, Inc.