My Prediction of the Torstar FutureThis is my best guess of the future with all of the guarantees that come with anything that involves the gang from Dysfunction Junction:
· Strategic Review after almost 6 months completed – the CEO will have provided a fulsome assessment of the opportunities for the turnaround initiative supported by a big name consulting firm. The Board and the Voting Trust will need to make a careful determination of the achievability of the plan laid out by the CEO and his team. Employees will be waiting on tenterhooks for a sign of the future from the corner office and what the implications are for each of them.
· The 2018 Business Plan will be presented in Q4 to the Board and the Voting Trust, presumably built upon the foundation of the Strategic Review. The review of the 2017 results will be perfunctory as it will be the prior administration’s plan and no one will own it or wear it. The Business Plan again will be assessed against the reality of the history and challenges of the industry.
· Q1 2018 results will be the first substantive indicator of the success or lack thereof of the new CEO and his team. If the results are a disaster this should generate significant soul searching by all concerned and maybe even some action.
· If the results are positive and are seen to be sustainable, that should be good news for the share price and for the future of the Company.
· If the results continue the pattern of the last decade the Board and more specifically the Voting Trust have a serious decision to make.
· If the results are inconclusive this will buy some time, but not a lot of time. If they aren’t showing traction in a meaningful way in a number of important metrics this should be a serious concern.
· If print advertising and subscription revenues continue their descent and if VerticalScope starts to sputter oil this will be a defining moment for the Voting Trust. Will they or can they muster the courage and conviction to save themselves from themselves?
The 2018 AGM will possibly be the clearest indication of the future direction of the Company if nothing happens before then.