Observations and statements; some new, some old.1)Torstar has about 80,000,000, in cash, and about the same number of shares. So, according to the latest shareprice (SP) the rest of Torstar is worth 77 cents per share. I would suggest that Torstar is worth more that 77 cents per share ($62, 000, 000).
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2) From the press release:
"Our net income from continuing operations was $0.7 million ($0.01 per share) in the fourth quarter of 2016. This compares to a net loss of $233.4 million ($2.90 per share) in the fourth quarter of 2015. Our income in the fourth quarter of 2016 included $15.6 million of amortization and depreciation and $7.5 million of non-cash impairment charges. "
So, if you add back those ($15.6 mill + $7.5mill) non-cash impairment charges to net income, you get ($23,000,000 / 80 000000) about 28 cents. So, really, net income for the quarter was about 29 cents if you get rid of the non-cash charges. A quick DCF calculation using the calculator at moneychimp.com (where I project 28 cents per quarter annually, or $1.12/annually) gives us a SP of $10.18.
Now if Torstar had lost that kind of money due to lost revenue (as in lost subscriptions or flopping businesses), that is, if the business was losing real money, then that would be a real problem. No such problem exists. I would go so far as to call them accounting fictions, or accounting-induced misdirection. Or, as my Uncle Buckingham might say, accounting horses***.
3) I should mention that when the SP finally gets to the right level, I will be buying a new damn watch...probably a Grand Seiko. Seiko makes good watches people. You need to know this.
4) Some fairly negative stuff: a)I think the VerticalScope sites are awful, and I can't imagine who visits them b) I prefer the writing done inThe Globe and Mail (and I even signed up for a discount subscription...so I could read their article about the Tortar almost buy-out! c) I never take a copy of the Metro offered to me in the morning!
5) Some fairly positive stuff (some mentioned before by me or others): a) I am addicted to the weekly flyers. That is a fact. b) The VerticalScope revenue will be even more after factoring in the strengthening US dollar. c) potential IPOs of other assets d) potential of dividend hikes e) potential of pension responsibilities easying up.
6) I feel that we've weathered the world's longest investment storm, and now it's time for some clear sailing to sunny islands, with lots of...money.
Well, we've had a couple days of gains. So, that' something for a start.