RE:RE:Theory Concerning Insider Non-Trading Activities and FairfaxHi 20,
I haven't done any research on the historical incidences of company insiders not buying shares before a takeover, but it just makes sense to me on so many levels:
- The heavy concentration of ownership with Fairfax, Power Corp and Cansoe added to the mix is just too compelling to ignore. What insider could resist buying the shares knowing these deep pocketed organizations are waiting in the wings?
- The prospects of merging or some form of competitive rationalization with Postmedia is also a compelling story. I was not suggesting a merger with National Post, but rather shutting it down and using the Financial Post as a replacement business section in the Torstar dailies. The culture at Postmedia has its roots with Southam, a company that Torstar once owned a large share of in the 1990's, Once Godfrey and the SunMedia bandits are removed it could be a culture that would be easily integrated with Torstar.
- No senior executives or Board members buying shares paying a 7.5% dividend and near historic lows can be a good or an ominous signal. Point 1 above causes me to believe there is a higher probability it is good signal,
I could go on, but investors will make their own determination as to the future prospects for Torstar. I think the upside remains significant, but anything could happen with the Keystone Kops.