Waiting for the Tipping PointHi All,
A patient investor waits until the time is right to make the transaction happen. Everyday virtually everyone is selling their TS.b shares for less than what they paid for them because they have lost interest and or patience with this investment ever returning their original purchase price. In an average year approximately 7.3 million B shares change hands. With 30 million non Voting Trust or Fairfax controlled shares outstanding, the turnover to lower average purchase price shareholders is happening with each and every trading day.
That’s good news for Fairfax and for those who have chosen to stay the course. Flushing out the shareholders who paid more than $6/share reduces the potential resistance to accepting an offer of $6 in cash for their non-voting shares. Those with an average share price of say $3 or $4 will be delighted to take the money and run. Fairfax can negotiate a privatization deal with the Voting Trust to buy out the 30 million unwashed masses and deal with the longer term valuation issues between themselves.
Taking the time to lower the average shareholder’s investment in Torstar is unfortunate for those past investors who got burned, but the Voting Trust is only concerned with their interests and legacy. Fairfax can wait until the field is cleared and then can deal with wrestling final control from the Keystone Kops at some agreed point in time in the future.