all of us love the dividend, but why are they paying it? ...shhh, we all know why!
The fact that Torstar's management pays a dividend when net income is scraping along the bottom on a net income basis, is Poor Management, period! (Yes, they had a good quarter due to a large tax credit from 2015 and selling an asset, but even a novice can see thru this smoke and mirrors.)
Not surprising that they are paying the minimum dividend, of 2.5 cents a quarter, on "a rolling quarterly basis" that prevents B shareholders from getting a vote!
What I do NOT understand is why Torstar's management does not execute on one or more of the following:
1) merge with Postmedia, to reduce cost. By the way, Postmedia's market cap is now close to Torstar's.
2) Go private and not have to deal with the likes of us, "B" shareholders actually wanting them to perform.
I fear that management will continue to run this company into the ground, as they have in the past 5 years. Those of you wanting a $5.00 payout are in serious jeapordy. Have you read the latest Bank forecasts? Many Banks are not even giving a forecast as they have thrown in the towel on this company.
I can say with confidence that there has been one (1) investor over the past couple of month that has sold in excess of 1mm shares. As thinly as Torstar trades, it is NOT surprising why the stock has declined to $1.25 from $1.90. Guess whay happens if Prem Watsa decides to sell in earnest? It will not be pretty.