RH Donnelly (RHD) publishes print yellow pages directories plus similar online services. It recently acquired Business.com. The stock has crumbled as revenues in its core business threaten to decline. The company also labors under an enormous $10 billion dollar debt load which dwarfs the company’s 100 million dollar market cap.
Counterargument: The company produces a substantial amount of positive operating cash flow from its core directory business. Although revenue declines are widely predicted, in the past quarter revenue was stable. As a prior shareholder of AT&T, I was always impressed by the huge margins and stable cash flow of the directory segment. For some reason businesses still feel the need to pay money to get listed in these antiquated books.
- 52 Week High Price: 68.21
- Recent Price: 1.47
- Decline from 52 Week High: 98%
Chart courtesy of StockCharts.com
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