Too Much Time on my Hands... World Upside Down – TS.B vs PNC
Why the current valuations comparing Torstar to Postmedia make no sense:
Market Caps: TS.B $65 million PNC $112 million
Book value per share: TS.B $3.04 PNC -$.92
Cash net of Debt: TS.B $56 million PNC -$234 million
Total Equity: TS.B $257 million PNC -$95 million
Dividend: TS.B $.10 PNC $0
Dividend Yield: TS.B 11.11% PNC - nil
Total Annual Operating Revenues: TS.B $616 million PNC $676 million
Annual Interest Expense/income: TS.B $.1 income PNC $27.5 million expense
Postmedia owns some valuable newspaper properties across Canada, but with negative equity and $234 million in debt net of cash, it’s hard to see how shareholders of Postmedia will ever see any return on their investment. Both companies are a financial mess and controlled by individuals well beyond their best-before dates.
At some point in time, the unrealized value of Torstar will be returned to all shareholders unless the Voting Trust chooses to see it driven into the ground. None of the families has the financial wherewithal to pour additional capital into the business and there isn’t a next generation waiting in the wings to take control. Put Torstar in the bring-forward file for this time next year and keep collecting the dividends.