Loosely Connected Thoughts1) The newspaper industry is frequently described in unflattering, pessimistic terms. We hear
that it is a dying, if not dead, industry. Who cares about newspapers? Who cares about those dry, crinkly, inky, and inky-smelling, wads of paper? No one should care right? How comes it then that there have been two Hollywood movies in the last two years that have focussed on newspapers? We had Spotlight which focused on the Boston Globe. The film picked up at least one Academy award I believe. We then had a film called The Post...about The Washington Post . How odd that the lowly newspaper has gotten the attention of the glamorous movie industry. I will let you draw your own conclusions.
2) I think we can agree that share prices are sometimes (often?) disconnected from the business facts of a company. So, following that thinking we can say who cares about the valuation of Torstar. Who cares about its true worth? So, what are we left with? We are left with the facts of dividend payments. We are left with a daily share price. We are left with the passage of time. We are left with the fact that share price has been low for a long time. We are left with the fact that we must wait for the share price (for whatever reason) to be what we want it to be or can accept it to be in our various circumstances.
3) But, all of our consideration of valuation is not useless. At the very least, it allows us to invest in a company that will not go bankrupt. As long as we have invested in a company that will remain solvent, we need only wait for a suitable share price.
So, here's to waiting.
4) All of that said, it is still fun to speculate about the direction of the share price. We've come a long way from the 1.25 levels. We seem to be holding in the 1.80 range. The next step looks to be busting through $2.00.
5) As usual, the move to make (as someone else had mentioned) would be to buy now and average down (in my case), but I am not keen to make that move.