SuperMedia: Turnaround Play

A New York presenter recommends SuperMedia (NASDAQ: SPMD, $39.40). This publisher of directories just emerged from bankruptcy in January, with a debt load reduced from close to $10 billion to $2.75 billion. Management's much more focused strategy and improving economy make this an attractive turnaround story. The company's unique guarantee program differentiates SPMD from competiton. Strong online presence, growth in direct mail, and opportunities in mobile applications should help mitigate negative trends in print directories. The upside is 100%+, based on comparison to DEXO, a major competitor, which has also gone through bankruptcy.