95% of my portfolio is in yellow warrants, wouldn't sell any, of course.
I see a likely scenario where MNI returns as much as yellow warrants over the next 9 years. MNI is a much more complicated animal than your back of the envelope numbers, which is of course one of the reasons it's so cheap. The debt is publicly traded with various maturities, interest rates, and prices; the earnings come from an evolving mix of subscription, advertising, "nontraditional", print, digital, and online classified equity investments; the balance sheet has pension liabilities which are very sensitive to interest rates and real estate that is held at cost and depreciated.
I think this is an inflection point for the company, where cash flow and the top line could start growing again, debt gets reduced or refinanced (trading at 110 now), cash starts flowing to the equity holders, and the stock is trading at 1x 2018 FCF.
Having never defaulted, nearing stabilization, domiciled in the US, and with debt trading above par, I think we will see a market that will be much more lenient about debt levels than we see for yellow pages companies around the world.
