More on insider buying- it's time to BUY. Morning INK Report Transcontinental insiders bet Coveris acquisition will pay off Source: INK Research Company Highlight: Transcontinental (TCL) • Printing company with flexible packaging, publishing, and digital media operations in Canada and the US • Acquiring Coveris Americas - a manufacturer of flexible plastic and paper products - closed May 1st was financed in part by a $287.5 million bought deal public offering of 10.81 million shares at $26.60 • Contribution of Coveris Americas to the bottom line was not as substantial as hoped for. Q3 net earnings came in at $19.3 million ($0.22 EPS), down from $49.0 million ($0.64 EPS) in Q3 2017
• Stock has shed 27.1%, setting a 52-week low of $20.42 on October 10th
• Management remained confident that the firm would meet previously established targets and that they are on track to realize the anticipated synergies from the acquisition
• Chief Legal Officer and Corporate Secretary Christine Desaulniers acquired 1,900 Class A Subordinate Voting Shares on a direct ownership basis at a price of $21.01
• Director Peter Brues acquired 11,500 Class A Subordinate Voting Shares on a direct ownership basis at a price of $21.26
• Director Annie Thabet (PJC,RUS) acquired 2,250 Class A Subordinate Voting Shares on a direct ownership basis at a price of $22.05
• Director Richard Fortin (ATD,NA) acquired 43,000 Class A Subordinate Voting Shares on a direct ownership basis at a price of $22.94
• CFO Donald LeCavalier who acquired 1,400 Class A Subordinate Voting Shares on a direct ownership basis at a price of $22.97