Mar 2012 debt payment coupon on the 12% Dex Seniors is 50% cash, 50% new debt. That's why it's market value is only 27c on dollar.
Dex's quarterly reports on digital segment growth is the bottom line story with Dex. Everyone knows print continues to shrink. If Dex continue to grow it's digital end and meets or exceeds projections, then we do indeed have a digital marketing player here, more than capable in managing it's debt obligations and skyrocketing share price.
If this stock goes lower from here it's a gift. Buy low, sell high. Come to papa!
DEXO's 12% coupon bonds are still trading in the 20's down from around 80% at the beginning of the year.
Will this recent run-up in price be sustained or will DEXO come crashing down to Earth once again?
Watch the bond price over the next couple of days and if it goes up signficantly, then it makes sense to hold the stock. However, if the bond does not move up, then it makes sense to sell the stock and take the profits.