Usmo

[BadThad]

Figured I'd start this forum section off with one of my big dividend payers:

USMO

Stock is up pretty well, but I'm afraid this bad article is going to hit the stock hard.....stupid Motley Fool:

ARRRGGGGGG

Nonetheless, I've reaped some killer dividends from USMO including a recent $1.65/share one.

Todays price for historical thread reference: $26.67

[zekthecat]

That is a nice little yield that they have. Are you in this company or just looking to get in. I don't think that the article will have too much of an impact on the stock. People buy dividends because the company is sound, but the only thing that is a little troublesome is the high yield that they have. I haven't look at the finance but it is hard to believe that they have that much extra cash to pay without taking it from somewere else.

[BadThad]

Originally Posted by zekthecat

That is a nice little yield that they have. Are you in this company or just looking to get in. I don't think that the article will have too much of an impact on the stock. People buy dividends because the company is sound, but the only thing that is a little troublesome is the high yield that they have. I haven't look at the finance but it is hard to believe that they have that much extra cash to pay without taking it from somewere else.

I own this stock and have for months now.

It's funny, that article is dated July 2nd, but seems to really had no effect on the stock....a good thing....what a bash article. I think someone is bitter that they sold it too soon. LOL

Go look at their financials, they are solid regardless of that bash article. They have viturally no debt and tons of cash.

The Steet.com rates it as a BUY as of June 19th:

RECOMMENDATION
We rate USA MOBILITY INC (USMO) a BUY. This is driven by a few notable strengths, which we believe
should have a greater impact than any weaknesses, and should give investors a better performance
opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its
increase in stock price during the past year, largely solid financial position with reasonable debt levels by
most measures, attractive valuation levels, expanding profit margins and growth in earnings per share. We
feel these strengths outweigh the fact that the company shows weak operating cash flow.
HIGHLIGHTS
The stock has risen over the past year as investors have generally rewarded the company for its earnings
growth and other positive factors like the ones we have cited in this report. Turning our attention to the
future direction of the stock, it goes without saying that even the best stocks can fall in an overall down
market. However, in any other environment, this stock still has good upside potential despite the fact that it
has already risen in the past year.
USMO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a
relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate
quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
The gross profit margin for USA MOBILITY INC is rather high; currently it is at 64.40%. It has increased from
the same quarter the previous year. Along with this, the net profit margin of 11.70% is above that of the
industry average.
USA MOBILITY INC's earnings per share improvement from the most recent quarter was slightly positive. The
company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel
that this trend should continue. During the past fiscal year, USA MOBILITY INC increased its bottom line by
earning $1.46 versus $0.48 in the prior year. This year, the market expects an improvement in earnings ($1.54
versus $1.46).

FINANCIAL ANALYSIS
USA MOBILITY INC's gross profit margin for the first quarter of its fiscal year 2007 is essentially unchanged
when compared to the same period a year ago. Even though sales decreased, the net income has increased,
representing an increase to the bottom line. USA MOBILITY INC has average liquidity. Currently, the Quick
Ratio is 1.32 which shows that technically this company has the ability to cover short-term cash needs. The
company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 14.51% from the same quarter
last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will
face financial difficulties in the near future.

VALUATION
BUY. The current P/E ratio indicates a significant discount compared to an average of 48.96 for the Wireless
Telecommunication Services industry and a discount compared to the S&P 500 average of 18.78. For
additional comparison, its price-to-book ratio of 1.44 indicates a significant discount versus the S&P 500
average of 3.01 and a significant discount versus the industry average of 5.63. The price-to-sales ratio is
below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment
of these and other key valuation criteria, USA MOBILITY INC proves to trade at a discount to investment
alternatives within the industry.

Ford rates it a HOLD
Market Edge rates it LONG
Jaywalk rates it HOLD

[BadThad]

Well, so much for their bash article, up another 2% today!