perham, i'm looking at Morningstar's data (key ratios) which show revenues, margins, and free cash flow fairly steady over the past 9 years, and improved from the recovery from the last recession, 2002-2003. and a strong dividend with a low payout ratio for the past 8 years. while the high debt is not ideal, RRD's problems hardly justify the PPS or a strong sell rating. not much coverage of this stock, but from what i've seen it's rated either a 'buy' or an 'outperform'.
Times have changed. Buy at your own risk. Books in the dumper, who's using hard back books any longer, no business to replace this largest segment. Mag and catalog down ..... No vision from the top to transform the business = a company that will continue to cut cost to make its numbers. Death spiral in progress. Share price of 3.00 would not surprise me.
I read an article the other day that argued the dividend was weighing too much on the company's FCF. The author argued that with a lesser dividend of something like $.10 the stock could be valued at $16/$18 a share whereas with the current divy, it wasn't worth anything north of $10.
Man we've been slammed. $8.85? Dividend yield of almost 12%. Crazy stuff.
RRD isn't going bankrupt anytime soon so I suppose I'll continue to cash in on the quarterly divy and sell sometime north of $12.