Post Labour Day Action Now that summer is out of the way, the focus will return to either delivering results or continuing the disappointing performance that has characterized Torstar for the past decade.
I wouldn’t get too concerned about the valuation of VerticalScope or any of the other individual assets in the portfolio, but rather we need to drill down on the actions the Board and management are taking to execute the turnaround.
Boynton has had enough time and data to assess what needs to done to unlock the value of Torstar. No doubt he has also been assisted by a high priced consulting firm to not only provide strategic options, but also cover should everything go off the rails. This would follow the classic CEO strategy of finding someone else to blame, because when you write a seven figure cheque to BCG, Bain or McKinsey they should be able to get it right. It is never an execution issue....
The pressure is or should be building to deliver something tangible to the Board and shareholders. Panic shouldn’t be setting in yet, although staffs have to be feeling a high level of anxiety as the lack of transparency around the agenda is sure to be disconcerting. Good people will be leaving and the recruitment of talent will be both difficult and expensive. Tickets on the Titanic are a tough sell, regardless of the quality of the deck chairs.
The Q3 results will tell us a lot about the future and less so about the past quarter. Boynton will have to provide some measure of comfort that he has a plan in hand and has the authority to execute it. More vague assurances that he is a turnaround specialist from Honderich will not cut it with the investor community. Time to demonstrate some leadership and make things happen or step aside and sell to Fairfax.