How do you like the “Transformation “so far?Torstar released another set of disappointing results with absolutely nothing to suggest they have a handle on the business or any form of transformation. Honderich described Boynton as a “transformation agent” when he introduced him earlier this year. I think he meant transformation secret agent because after 8 months of thrashing about there is absolutely nothing to give investors a shred of confidence he isn’t just another empty suit uttering the same claptrap about better days are just ahead – trust me and don’t look behind the curtain.
Big news - they sold wagjag, an inferior, poorly conceived and sadly executed knock-off of Groupon that has contributed nothing but the loss of millions since inception. When does Workopolis, with all of the same attributes as wagjag suffer the same fate or get shutdown? This isn’t jet rocket surgery, but the craziness doesn’t stop here.
The brain trust quietly promotes the Oliver Brothers (Ian and Neil) from Metroland Media into ill-defined Torstar roles with even murkier job descriptions (see Officers and Senior Executive page on Torstar website https://www.torstar.com/html/ourcompany/Officers_and_Senior_Executives/index.cfm) at the time the results at Metroland lead the pack in terms of disappointments. Neil doesn’t even merit a picture or perhaps he is another secret transformation agent. As a further aside, the Oliver Brothers distinguish themselves as being the only MBA alumni of the University of Leicester to not be employed at a fish and chips shop somewhere in England. Apparently sending in all those box tops wasn’t a waste of time after all. You have to ask yourself if this was the best that Torstar could find to lead their newspaper properties and it confirms my darkest suspicions about the onset of full corporate dementia.
At the same time, they fire the Star Media Group COO of Print without a word and recruit a bunch of expensive non-industry retreads to bulk up the executive ranks. Analysts will want to dissect the VerticalScope results which can best be described as unimpressive, notwithstanding what Boynton may say. Acquisitions and the piling on of debt continue unabated, but it provides a distraction from the realities of the core business or what used to be the core business.
The dividend is the only thing propping up the share price for the uninformed investor. The sooner the share price goes deeply into the dumpster or the dividend is chopped the sooner the Voting Trust will realize they need to stop being spectators to this debacle. Hearing the same sorry excuses every quarter has to be soul destroying for the members of the Voting Trust who have a soul, not to mention the employees who are ringside to this incredible theatre of the absurd. Time for them all to light their tiki torches, drive the mad chairman out of office and sell before it all crumbles down around their ears.