RE:TORSTAR : SHARE OFFERINGHi modulex,
Prem Watsa makes some investments that aren't always intended to line his pockets. His years of success have allowed him to indulge in some investments without an obvious significant financial return. He has engaged David Johnston, the former governor general as a special advisor to Fairfax, and Torstar would fall into the wheelhouse of socially responsible investing for which Johnston would be a strong proponent. Watsa is on a mission to save Torstar and perhaps Postmedia from themselves as a legacy investment..
Investors should not be concerned about the frustratingly slow ascent or descent of the share price. Watching the daily movement is reserved for the terminally bored and says very little about the prospects for the company, Most institutional investors lost interest years ago and retail investors will only bid the price up or down in small increments.
The eventual privatization price will be dictated by the premium the Voting Trust demands to cede control of the company. It will not be a crazy premium as they lose more leverage with each passing quarter of crappy results. I still maintain it will be in the $6-7 range and it will not matter what the share price is on the day they make their move. This is far from a standard privatization and so one has to ignore conventional metrics.