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Prime Markets in the Press - Yell Group (YELL)

28/07/2010

Shares in British yellow-pages publisher Yell tumble 10 percent after the company says organic sales fell 10.6 percent in its first quarter and sales would stay under pressure as its small business customers remained cautious. In early trade, the volume is already about 95 percent of its 90-day daily average.

"The recent history of Yell is a series of trading statements punctuated with the odd bright spot, but with an overall impression of a company in terminal decline," says Richard Curr, head of dealing at Prime Markets.

"The business is fundamentally rooted in print, where the trend is moving inexorably toward online and mobile solutions. The Yell online offering seems to have made little impact alongside the likes of Google, and barring a major shift in habits, this looks set to continue," Curr says that the statement is simply the latest episode in managing a huge debt pile and attempting to imply that once the recovery arrives, fortunes will change. "Prime Markets think otherwise." He has a "sell" recommendation on the stock.

Reuters

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