Dex One Corporation (DEXO)

[Lymans]

Yes I am and will continue to hold for 2Q results for further assesment, IMO Mockett and gang have chosen the current path. 4q 2011 accounting has some eps discrepencies(see yahoo maxdad post day of 4Q release) I believe the 4Q was thrown under the bus
and 1Q 2012 forecast outlook "slightly down" Is a Mockett Master plan.
Why?
the results of a better than expected 4Q would have been an increase in PPS that might last for a few qtrs and would also have a negative affect on the leverage for the debt buy back.
report a great qtr and pay more to buy the debt back.
4Q results as reported allowed them to buy debt back at an incredible discount. I notice they are not buying debt back in one shot, why? offer to purchase at sub par gets DEX an S&P downgrade and the actual purchase gets them another downgrade which will allow DEX to negotiate for an even better buy back % on the next round already in process.
This all seems to feed into the debt buy back plan which IMO the debt is the biggest hurdle.
Report a soso 4Q and maybe 1Q just soso enough to keep the INST from running for the hills, all the while buying back the debt at a steep discount. end results for throwing 4Q under the bus is the enhancement of an entire future of qtrs by removing the debt.
after all the debt buy backs are completed S&P will review and upgrade the rating (I dont want to miss that day)as the PPS is extremely undervalued.

http://seekingalpha.com/article/454141-look-for-significant-improvement-in-dex-one-s-balance-sheet-and-valuation-metrics

Another thing I noticed is the debt buy down projections for 2012 started at 200M then increased to 400M and increased again to 500M

Fact is Franklin has added 32% to there holdings with a recent sell off of less than 1%
along with ALL other INST'S adding to there positions.

http://data.cnbc.com/quotes/DEXO/tab/8

Dont let the other discussions take your eye off the ball(debt)
thats the problem, I am not discounting that the DIGI vs PRINT discussion is not a valid one, but it is definetly secondary to the debt.
This is MY OPINION and anyone reading this please do your own DD
this is and will continue to be a rough and risky ride for 2012.