Dex One has a price/sales value of 0.5, a quarterly revenue growth (yoy) of 38.7% and a total return of -82% for the past 12 months. It has a levered free cash flow rate of $265 million.
Net income for the past 3 years is as follows; -$2.3 billion in 2008, -$6.4 billion 2009, and $5.9 billion in 2010. Net income turned positive in 2010 and this should be viewed as a small positive development compared to the $2.3 billion and $6.4 billion losses in 2008 and 2009, respectively.
Developments which could be construed as mildly positive
A decent quarterly growth rate of (yoy) of 38.9%, a positive levered free cash flow of $265 million, and net income turning positive for 2010 as opposed to the losses of 2008 and 2009. Short percentage of float is 15.4%, which makes it a potential candidate for a short squeeze.
It managed to break past former resistance level of $1, and this former zone of resistance has now turned into support. As long as it does not trade below $1 on a weekly basis, the outlook will remain bullish. A weekly close above $2 should lead to a quick test of the $3.00-$3.30 ranges. Positions could be opened on a pullback to the $1.10-$1.25 ranges. Place a stop at 75 cents.