IAR is an enigma from the get go. It was spun off from Verizon. The banks and the FCC allowed Verizon to dump 10 billion in debt onto it, a rediculously overinflated amount, essentially letting Idearc flip the bill for Verizon's purchase of MCI Worldcom ($8 billion). Also keep in mind that Verizon sold off many of the directories company's profitable markets and their two printing plants to the tune of $2 billion before spinning the company off.
The company was valued at about 3.5 billion when it was first spun, and they make $300-400 million a year profit. But then everyone started looking at that big $10,000,000,000 in debt out there saying "WTF????" and the Wall Street Shills started shorting the stock without abandon. IAR is without question the victim of massive Naked Shorting and fearmongering in the last 6 months. It is still a VERY profitable company, despite the debt. Lets face it, name another company that operates on a 15 - 20% profit margin.
It is my honest belief that all of this has been orchestrated with one purpose in mind....allow Verizon to shell game $10 billion in debt. I've heard rumors that Verizon will buy IAR's debt at $.05 on the dollar when they fold and bring the company back in house. Whalla, Verizon has just gotten rid of $10 billion in debt which equates to getting MCI Worldcom and all of their fiber infrastructure to support FIOS initiatives for nothing.....oh and the bonus is, they get their $300-400 million dollar a year generating cash cow of a directories company back in house for a mere one time cost of what $500 mil?