certainly took on a significant risk when he welcomed Dial Global
) to the fund's portfolio in the third quarter of 2012.
Not too long after Oaktree's $71.3 million purchase, Dial Global
announced its decision to voluntarily delist from Nasdaq. The
company's board reached the decision through consideration of
several factors including the relatively limited historical
trading volume of the company's common stock, the compliance
costs from maintaining its Nasdaq listing, and the applicable
laws and rules from the federal government and the exchange
itself, among other things.
Dial Global, a radio and TV programming content provider,
produces news, sports, talk, music and entertainment programs
such as jingles and images.
The company is wrapping up its delisting process since filing a
Form 25 to the SEC in the end of November. On Dec. 19, the
company deregistered more than 2.6 million of its Class A common
stock and more than 8.5 million shares of regular common stock.
What was once a dull company insider trading history turned into
a frenzy to distribute the company's shares among its board
members on Dec. 31.
Insider activity listing
From Dial Global's
, it has incurred millions in debt and is unable to cover its
interest. Its revenue has been in a steep 39.8 percent decline in
the past 10 years. Its free cash flow shortage is through the
The recent events on the stock has shed a huge chunk of its
market value within one day, moving from $2 per share down to
Marks, who purchased the stock at an average price of $2.84 a
share, experienced a 90 percent slump from its average. The new
holding made up 2.6 percent of Oaktree's 48-stock portfolio.
As part of Dial Global's departure from the Nasdaq, the company
urges that if investors are interested in the company, its common
stock will be traded on the OTC Pink Sheets.
Besides Marks, two other investors on GuruFocus have traded the
stock in the past, including Hotchkis & Wiley and
See the rest of Howard Marks' holdings in his Current Portfolio.
Also check out his Undervalued Stocks, Top Growth Companies and
High Yield stocks.
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