RE3: Here's the difference between revenue decline of a dying company and the revenue decline of Yellow Media. When revenue declines an x%, say 17%, you'd expect to see profits to fall that much faster because of margin decline. But for the last several quarters, YPG has managed to maintain their EBITDA margin. In fact the 51.4% margin we saw in Q3 2012 was the highest margin since Q2 2011 at 51.5%. In a normal dying business not only do you not see such a high margin to start with, but you certainly do not see any maintenance of that margin.

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pinecone: A NORMAL dying business? as opposed to what?

Maybe Y is an anomalous abnormal dying business.

I fail to  see how your argument based on  margins holds water.

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RE38: Just refer to the quarterly history of Bell and Telus Wireline segmented financials to see what I mean. It's what I do for a living and I can tell you with all sincerity they would love to have margins as good as YPG.

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pinecone: In my last position of employment, before walking away from the stupid bas*ards and becoming wholly self-employed,  I was responsible for the preparation and analysis of the quarterly financial statements of approx 40 food stores (market gardens) plus a few convenience stores. (Incidently, the parent company of that entire food distribution business which included ownership of the market's real property, was also, at that time 90-91,  a Quebec-based company, Provigo Foods.) So I know a little bit about margins.

 Some of the poor suckers who mortgaged their homes to become “owners” of these “market gardens” lost their equity in 6 months.

The margins remained healthy and stable, but due to inadequate sales volume, the burden of operating and finance costs spelled doom D-O-O-M for the “owners”.