RE:Coffee, Mystery, Storytelling Hi 20,
I like your optimism and while it won't be a clear path to success here, it will happen. A few quick points:
- VerticalScope in in acquistion mode and when you are buying companies you generally don't telegraph your strategy or financial performance/resources for both targets and competitors to analyze. Hence the lack of financial transparency;
- VerticalScope is on track to generate $100 million in revenues (Q2 $20 million) and with revenue growth at 20%+ the value of Torstar's interest exceeds the total current market cap of the company today. All of the other assets of Torstar are effectively discounted to zero or into negative territory which is beyond ridiculous;
- Don't read too much into Honderich taking a conspicuous vacation. He is oblivious to the financial performance of Torstar. He is in his early 70's and these trips were on his bucket list;
- I wouldn't recommend financing buying more shares at a cost of 13%, but when the shares start to head north they will move quickly. Probably a few more quarters of bumpy results for the market to digest, but if Boynton can create and execute a solid plan the market will respond to the hidden value of the portfolio of assets;
- I still steadfastly maintain that Fairfax, Mackenzie and Cansoe either hold the keys to prosperity for long suffering shareholders or they will blow up the company. They have the financial capacity to take the Voting Trust out and apparently the patience to wait for them to blink. The dividend is secure and does not represent a significant burden for them. If Postmedia gets into more trouble this may be the stimulus to get something done with both organizations and unlock the unrealized value at Torstar.
Keep the faith.